Universe on-line uol announced that they will pay their, Ask an Expert

Finance

Universe On-line (UOL) announced that they will pay their first dividend of $1 on their common stock in a year (D1). Analysts think dividends will grow by 30% in year 2, by 40% in year 3, and by 25% in year 4 before settling into a constant growth rate of 12% in year 5 and beyond. What is the value of UOL’s stock today based on this information if the required return is 16%?

WHICH IS THE PROCEDURE TO DO? (please do not just put the answer)

A) $34.59 B) $39.43 C) $28.00 D) $25.00

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92329050

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