In: Finance
Given the information in the table, what is the price of the stock in YEAR 1?
Today’s Dividend |
$3.10 |
Discount Rate |
6.59% |
Growth rate in dividends 0 to 1 |
8.24% |
Growth rate in dividends 1 to 2 |
7.28% |
Growth rate in dividends 2 to 3 |
5.50% |
Growth rate in dividends 3 onward |
4.26% |