If the last dividend paid was 340 what is the estimated


Assume that the average firm in your company’s industry is expected to grow at a constant rate of 5.40% and that its dividend yield is 6.40%. Your company is about as risky as the average firm in 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 64.00% this year and 74.00% the following year, after which growth should return to the 5.40% industry average. If the last dividend paid was $3.40, what is the estimated value per share of your firm’s stock?

 

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If the last dividend paid was 340 what is the estimated
Reference No:- TGS02670708

Expected delivery within 24 Hours