Problemthirsty cactus corp just paid a dividend of 210 per, Ask an Expert

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Problem:

Thirsty Cactus Corp. just paid a dividend of $2.10 per share. The dividends are expected to grow at 24 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely.

Required:

Question: If the required return is 13 percent, what is the price of the stock today?

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170316

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