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Using the Non-Constant Growth Model, calculate the (intrinsic) value of a stock paying the following dividend and with the given values for the 'required rate of return' ( or 'r') and assumed constant growth rate (or 'g'). The non-constant growth period is 4 years.

t=o dividend: $7.50 per year

Non-constant growth rate: 18.0% per year

Constant growth rate 7.0% per year after the non-constant growth period

Required rate of Return: 12.6%

Final answer here: _________this should be a per-share value rounded to the nearest cent.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91595872

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