In: Finance
Management of Blossom, a biotech firm, forecasted the following
growth rates for the next three years: 35 percent, 28 percent, and
22 percent. Management then expects the company to grow at a
constant rate of 9 percent forever. The company paid a dividend of
$1.70 last week. If the required rate of return is 16 percent, what
is the value of this stock? (Round intermediate
calculations and final answer to 2 decimal places, e.g.
15.20.)
what is the value of stock? $__