Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 5 percent per year indefinitely. The

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
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Mobray Corp. is experiencing rapid
growth. Dividends are expected to
grow at 26 percent per year during
the next three years, 16 percent over
the following year, and then 5
percent per year indefinitely. The
required return on this stock is 12
percent, and the stock currently sells
for $66 per share. What is the
projected dividend for the coming
year? (Do not round intermediate
calculations and round your answer
to 2 decimal places, e.g., 32.16.)
Transcribed Image Text:Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 12 percent, and the stock currently sells for $66 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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