• The Finance manager has just informed you that TikTok stock will continue to pay a dividend of $4.25 for the next 6 years. The current cost of equity for TikTok is 8.75%. After that, the Finance manager expects the cost of equity to drop to 7.50% and the dividend to increase by 2% per year. What is the value of TikTok stock?

  
  

Answer rating: 100% (QA)

To calculate the value of TikTok stock we can use the Gordon Growth Model which is a valuation metho... View the full answer