The company will pay a dividend at the end of year 1 d1, Financial Management

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The company will pay a dividend at the end of year 1 d1

Mega stock is expected to grow at 11% in year 1 and year 2, 10% in year 3, 8 % in year 4 and then grow at a constant rate of 4% in the years that follow. The required rate of return (Rs) equals 7%. The company will pay a Dividend at the end of year 1 (D1) equal to 1.25. What is the expected price of this stock?

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Financial Management: The company will pay a dividend at the end of year 1 d1

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