Problemthirsty cactus corp just paid a dividend of 125 per, Ask an Expert

Finance

Problem:

Thirsty Cactus Corp. just paid a dividend of $1.25 per share. The dividends are expected to grow at 40 percent for the next 9 years and then level off to a 5 percent growth rate indefinitely.

Required:

If the required return is 15 percent, what is the price of the stock today?

Note: Explain all calculation and formulas.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149564

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