Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow at 24 percent per year during the next three years, 14 percent over the following year, and then 8 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $86 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.) × Answer is complete but not entirely correct. Projected dividend 2.33x
Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow at 24 percent per year during the next three years, 14 percent over the following year, and then 8 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $86 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.) × Answer is complete but not entirely correct. Projected dividend 2.33x
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter9: Stocks And Their Valuation
Section: Chapter Questions
Problem 13P: CONSTANT GROWTH You are considering an investment in Justus Corporations stock, which is expected to...
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