T-Mobile US Inc. (ticker: TMUS) just paid a dividend of $1.20. Next year they plan...
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T-Mobile US Inc. (ticker: TMUS) just paid a dividend of $1.20. Next year they plan to pay a dividend of $2.00 and then they will pay a dividend of $2.50 the following year. After that, the dividend will grow at a constant rate of 3.2%.
If the required return is 9%, answer the following questions. a) Clearly label what the dividends will be for year 1 year 3. Why do we stop at year 3?
b) Find the terminal price of the constant growth phase.
c) Find the current price of the stock.
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