In: Finance
Tyco Inc plans to pay a dividend of $1.65 next year. After that the firm expects dividends to grow 3.5% for 3 years, than 6.5% for 4 years, than 12% for three years, and 4% thereafter. The required return is 8% what should the price of the stock be?
If you could show steps and formulas used, that would be great