Jeff's Bikes last dividend was $1.00. Jeff's dividend growth rate is expected to be constant at 15% for two years. Then dividends are expected to stay at 10% indefinitely. Jeff's required return is 12%. What should Jeff's current stock price be?© BrainMass Inc. brainmass.com December 15, 2020, 6:33 pm ad1c9bdddf
This is a case of two stage DCF valuation:
In the first stage of growth, dividends grow at 15% per annum for two ...
This post shows how to calculate the current stock price.