You are considering investing in a firm. Yesterday it paid a $4.44 dividend, and you expect its dividends to grow at 16.75% for the next five years. Beyond that, you estimate dividends will grow at a constant 1.95% per year, and your required return is 18%. What is the most you would be willing to pay for the stock?

Answer rating: 100% (QA)

We can use the dividend discount model to calculate the p... View the full answer