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In: Accounting

Company CT will have a growth rate of 30 percent for 3 years. after that, the...

Company CT will have a growth rate of 30 percent for 3 years. after that, the company will grow at 25 percent for five years. The company will have a growth rate for 15 percent for ten years. Then the company will have a constant growth rate of 10 percent. The required rate of return of investors for this company is 15 percent. if the company just paid a a dividend of 0.50 , what should be the stock price of this company?

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Expert Solution

Answer:

Stock price of this company = $41.67

Working:

The above excel with 'show formula' is as follows:

ekkarill92 answered 1 year ago
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