Assume a company has just paid an annual dividend of 095


Assume a company has just paid an annual dividend of $0.95. Analysts are predicting an 11.1% per year growth rate in earnings over the next five years. After that, the company's earnings are expected to grow at the current industry average of 4.8% per year. If the company's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict the company's stock should sell?

The value of the company's stock is $ ?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Assume a company has just paid an annual dividend of 095
Reference No:- TGS01248762

Expected delivery within 24 Hours