Far Side Corporation is expected to pay the following dividends over the next fo

Question

Far Side Corporation is expected to pay the following dividends over the next four years: $9, $4, $3, and $1. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever.

If the required return on the stock is 14 percent, what is the current share price? (Do not round your intermediate calculations.)

rev: 09_18_2012

Far Side Corporation is expected to pay the following dividends over the next four years: $9, $4, $3, and $1. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever.

Explanation / Answer

$20.34

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.