Stock C is expected to pay a dividend of $5.10 next year. Thereafter, dividend growth is expected to be 21.00% a year for five years (i.e., years 2 through 6) and zero thereafter. If the market capitalization rate for stock C is 8.00%, what is its stock price?

Answer rating: 100% (QA)

To calculate the stock price using the Dividend Discount Model DDM we can use the formula for the pr... View the full answer