Sophia Fournet expects the next three annual dividends for Michigan Electric (ME) to be $0.76, $0.85,...

Sophia Fournet expects the next three annual dividends for Michigan Electric (ME) to be $0.76, $0.85, and $0.95. Then she expects the dividend to grow at an initial rate of 10% decreasing at a constant rate to 2% over a 12 year period. After year 15, Sophia expects the dividend growth rate to be 2%. The required rate of return for ME is 10%. What is the share value of ME? (Enter an amount to the nearest $0.01. Leave the $ sign off.)

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jeff jeffy answered 1 year ago

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