In year 10 it will pay a dividend of 1200 per share and


Anthrax Inc is a young startup company. It will not pay any dividends for the next 9 years as it grows. In year 10 it will pay a dividend of $12.00 per share and this will grow at a rate of 4% per year forever after. If the required return on the stock is 18%, what is the current share price?

Solution Preview :

Prepared by a verified Expert
Finance Basics: In year 10 it will pay a dividend of 1200 per share and
Reference No:- TGS02717715

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)