Any help / Tips appreciated.
ABC currently pays a dividend of $2 per share and the dividend will grow at at 15% per year for 3 years, and then at 10% for the next three years, later it is expected to grow at a 5% rate forever. What value would you place on the stock at and 18% return? Would your value change if you held the stock for only 3 years?
ABC currently pays a dividend of $2 per share and the dividend will grow at at 15% per year for 3 years, and then at 10% for the next three years, later it is expected to grow at a 5% rate forever. What value would you place on the stock at and 18% return? Would your value change if you held the stock for only 3 years?