Problemthirsty cactus corp just paid a dividend of 120 per, Ask an Expert

Accounting

Problem:

Thirsty Cactus Corp. just paid a dividend of $1.20 per share. The dividends are expected to grow at 15 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely.

Required:

Question: If the required return is 10 percent, what is the price of the stock today?

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171894

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