Fesla just paid a dividend of $3.5 per share and it is expected to grow 16% each year for the next 3 years. After that, dividends will have a constant growth of 3% annually. The required rate of return for this stock is 10%. Given this information, what would be the share price for this firm? Round your answer to two decimals and enter your answer in the box below. You Answered 72.08 Correct Answer 60.4 margin of error +/- 0.5

Fesla just paid a dividend of $3.5 per share and it is expected to grow 16% each year for the next 3 years. After that, dividends will have a constant growth of 3% annually. The required rate of return for this stock is 10%. Given this information, what would be the share price for this firm? Round your answer to two decimals and enter your answer in the box below. You Answered 72.08 Correct Answer 60.4 margin of error +/- 0.5

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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