Tillin Corp. is start-up company which is not paying dividends for the next 3 years. At...

 

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Tillin Corp. is start-up company which is not paying dividends for the next 3 years. At the following year, Tillin will start paying an annual dividend of $70 per share per year until year 9. Thereafter, Tillin will increase the dividends by 5% per year forever. The required rate of return on this stock is 21%. What is the price of this stock right after the dividend in year 9 has been paid? Tillin Corp. is start-up company which is not paying dividends for the next 3 years. At the following year, Tillin will start paying an annual dividend of $70 per share per year until year 9. Thereafter, Tillin will increase the dividends by 5% per year forever. The required rate of return on this stock is 21%. What is the price of this stock right after the dividend in year 9 has been paid?

Answer rating: 100% (QA)

To calculate the price of Tillin Corp stock right after the dividend in year 9 has been paid we ... View the full answer