Temp corp just paid a 225 dividend because of a new


Temp Corp. just paid a $2.25 dividend. Because of a new invention, the dividend is expected to rise at a 35% rate for two years, then a 15% rate for two more years. Then, competition will flood the market and the firm will pay a $32 liquidating dividend and cease to exist. If you require a 12% return to compensate for the risk, what is a share of the stock worth?

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Operation Management: Temp corp just paid a 225 dividend because of a new
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Now Priced at $10 (50% Discount)

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