Thirsty Cactus Corp. just paid a dividend of $2.10 per share. The dividends are

Question

Thirsty Cactus Corp. just paid a dividend of $2.10 per share. The dividends are expected to grow at 21 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 14 percent, what is the price of the stock today? (Round your answer to 2 decimal places. (e.g., 32.16))

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Thirsty Cactus Corp. just paid a dividend of $2.10 per share. The dividends are expected to grow at 21 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 14 percent, what is the price of the stock today? (Round your answer to 2 decimal places. (e.g., 32.16))

pliiz help

Explanation / Answer

P= (2.1x1.21)/1.14+((2.1x1.21^2)/1.14^2+(2.1x1.21^3)/1.14^3+(2.1x1.21^4)/1.14^4+(2.1x1.21^5)/1.14^5+(2.1x1.21^6)/1.14^6+(2.1x1.21^7)/1.14^7+(2.1x1.21^8)/1.14^8+{[(2.1x1.21^8x1.07)]/1.14^8(.14-.07)}

P= $73.88

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