Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assuming that the discount rate is 10%. Please show calculation.© BrainMass Inc. brainmass.com June 4, 2020, 3:02 am ad1c9bdddf
The solution calculates the value of its current stock price.