Discuss the value per share of your firms stock


Assume that the average firm in your company industry is expected to a constant rate of 6% and that the dividend is 7%. Your company is about as risky as the average firm n the industry but it has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 50% ( d1 =do(1.50) this year and 25% the following year, after which growth should return to the 6% industry average. If tithe last dividend paid (d0) was $1 what is the value per share of your firms stock?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Discuss the value per share of your firms stock
Reference No:- TGS0703738

Expected delivery within 24 Hours