Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow 28 percent per year during the next three years, 18 percent over the following year, a then 5 percent per year indefinitely. The required return on this stock is 12 percent, a the stock currently sells for $76 per share. What is the projected dividend for the comi year? (Do not round intermediate calculations and round your answer to 2 decin places, e.g., 32.16.)
Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow 28 percent per year during the next three years, 18 percent over the following year, a then 5 percent per year indefinitely. The required return on this stock is 12 percent, a the stock currently sells for $76 per share. What is the projected dividend for the comi year? (Do not round intermediate calculations and round your answer to 2 decin places, e.g., 32.16.)
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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Transcribed Image Text:Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow at
28 percent per year during the next three years, 18 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 $76 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.)
Projected dividend
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