You believe the non-stick gum factory will pay a dividend


You believe the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Therefore, you expect dividends to grow at a rate of 4% a year in perpetuity. If you require a return of 16% on your investment, how much should you be prepared to pay for the stock? (Round to two decimals).

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You believe the non-stick gum factory will pay a dividend
Reference No:- TGS02639478

Expected delivery within 24 Hours