your company just paid a dividend of 200 the dividend growth rate is expected to be 4 for 1 year

Name: your company just paid a dividend of 200 the dividend growth rate is expected to be 4 for 1 year 5 the next year then 6 for the following year and a constant 7 thereafter the stocks required 21084
Uploaded: 2022-05-27T15:27:44-08:00
Duration: 3 min 2 s
Channel: Derrick Danso
Description: your company just paid a dividend of 200 the dividend growth rate is expected to be 4 for 1 year 5 the next year then 6 for the following year and a constant 7 thereafter the stocks required 21084

Question

Willis James · Accepted Answer

First, we need to calculate the dividends for the next few years based on the given growth rates

Question

Your company just paid a dividend of $2.00. The dividend growth rate is expected to be 4% for 1 year, 5% the next year, then 6% for the following year, and a constant 7% thereafter. The stock's required return (rs) is 10%. What is the current stock price?

Please give Ace some feedback