The corporation projects to pay a dividend of $0.75 next year and then have it grow at 12% for the next 3 years, before growing at 8% indefinitely thereafter. the equity has a required return of 10% in the market. What should the price of the stock be?© BrainMass Inc. brainmass.com June 3, 2020, 9:54 pm ad1c9bdddf
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NPVGO model is to be used.
Price of stock will be ...
The solution explains the model for finding out price of stock, which is expected to pay a series of varying dividend.