The dividend that was just paid on ABC stock was $3.25. The company is expected to...

 

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The dividend that was just paid on ABC stock was $3.25. The company is expected to grow at 6% in the next four years and then have a constant growth of 3% after that forever. The cost of common equity 5%. What should be the price of the stock in four years, P(4), when the the company's growth rate becomes a constant 3%? Round to the nearest whole dollar. The dividend that was just paid on ABC stock was $3.25. The company is expected to grow at 6% in the next four years and then have a constant growth of 3% after that forever. The cost of common equity 5%. What should be the price of the stock in four years, P(4), when the the company's growth rate becomes a constant 3%? Round to the nearest whole dollar.

Answer rating: 100% (QA)

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