Apple sink inc asi just paid a dividend of 250 per share


Apple Sink Inc. (ASI) just paid a dividend of $2.50 per share. Its dividends are expected to grow at 26% a year for the next two years, 24% a year for the years 3 and 4, 16% for year 5, and at a constant rate of 6% per year thereafter. What is the current market value of the ASI’s stock if companies in this risk class have a 16% required rate of return?

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Financial Management: Apple sink inc asi just paid a dividend of 250 per share
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