Coffee shop chain Java the Hut just paid a $2.70 dividend. For the next two years,...

Coffee shop chain Java the Hut just paid a $2.70 dividend. For the next two years, you think it will grow by 12% a year, getting it back to its pre-recession level. After that, you expect it to grow at 5% a year forever. Assuming 13% required return, what is the value Java’s stock? can show using excel?

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Expert Solution

The stock value is calculated using excel

The value of Java's stock is therefore = $40.142

jeff jeffy answered 1 year ago

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