A company has just paid an annual dividend of $0.99. Analysts are predicting a 10.6 %...

A company has just paid an annual dividend of $0.99. Analysts are predicting a 10.6 % per year growth rate in earnings over the next 5 years. After that, the company's earnings are expected to grow at the current industry's average of 5.6 % per year. If the firm's equity cost of capital is 8.2 %per year and its dividend payout ratio remains constant, what price does the dividend-discount model predict the company's stock should sell for?

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jeff jeffy answered 1 year ago

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