A stock is currently not paying dividends. Three years from now, it is expected to...
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A stock is currently not paying dividends. Three years from now, it is expected to start paying a quarterly dividend of $0.10 per share, with growth of 5% per year thereafter. If investors require a 10% annual return, what should the stocks price be currently?
(I got 6.31 as the answer, but the application says that 6.31 is incorrect)
A stock is currently not paying dividends. Three years from now, it is expected to start paying a quarterly dividend of $0.10 per share, with growth of 5% per year thereafter. If investors require a 10% annual return, what should the stock's price be currently? (Round to the nearest cent and do not enter a dollar sign) 6.31
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