Problem:
Dhaka Jute Co. is experiencing rapid growth. Dividends are expected to grow at 30percent per year during the next three years, 18 percent over the following year, and then 5 percent per year, indefinitely. The required return on this stock is 14 percent, and the stock currently sells for BDT 500 per share.
Requirement:
Question: What is the projected dividend for the coming year?
Note: Explain the solution in detail.