Best Products Inc., is a young start-up company. No dividends will be paid on the stock over the next twelve years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $11 dividend in thirteen years and will increase the dividend by 5.5 % per thereafter. If the required return on this stock is 13%, what is the current share price?© BrainMass Inc. brainmass.com October 10, 2019, 5:08 am ad1c9bdddf
Stock price at the end of year 13= Next year dividend/(Required ...
The current share price for Best Product Inc is determined for a required return on the stock of 13%.