The current market price of bravos stock is 3066 per share


Company A just paid an annual dividend of $4.00 per share. Due to a need to conserve cash, the dividend in one year will be cut to zero. Dividends per share are forecasted to be $1.50 in two years, $2.50 in three years, and $3.50 in four years. After four years, dividends are expected to grow at a constant rate forever. Investors in Bravo Company require a return of 12%. The current market price of Bravo's stock is $30.66 per share.Determine the constant growth rate in dividends after four years that would justify the current market price.

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Finance Basics: The current market price of bravos stock is 3066 per share
Reference No:- TGS0662617

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