Cernerrsquos stock has a required return of 12 and the


Cerner’s stock has a required return of 12%, and the stock sells for $40 per share. The firm just paid a dividend of $1.00, and the dividend is expected to grow by 30% per year for the next 4 years, so D4 = $1.00*(1.3)4 = $2.8561. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever. What is the stock's expected constant growth rate after t = 4, i.e., what is X?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Cernerrsquos stock has a required return of 12 and the
Reference No:- TGS01567458

Expected delivery within 24 Hours