You are considering investing in a rapidly growning firm. Yesterday, it paid a $2 dividend, and you expect its dividends to grow at 10% for the next five years. Beyond that, you estimate dividends will grow at a constant 2% per year, and your required return is 11%. What is the most you would be willing to pay for the stock?

Answer rating: 100% (QA)

To calculate the present value of the stock we need to find the present value of all expected future ... View the full answer