IDNLearn.com provides a collaborative platform for sharing and gaining knowledge. Our Q&A platform is designed to provide quick and accurate answers to any questions you may have.
Company A has an EPS of $6.90 today. The company is currently not paying dividends. They expect to grow the earnings by 39% for the next 4 years. After 4 years, they will start paying 81% in dividends. What should be the price of the stock today if they expect the dividends to grow by 5 after year 4? The cost of capital is 9.20.
Sagot :
We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. IDNLearn.com is committed to providing accurate answers. Thanks for stopping by, and see you next time for more solutions.
