Walmart has just paid an annual dividend of $3.56. Dividends are expected to grow by 9% for the next 4 years, and then grow by 4% thereafter. Walmart has a required return of 9%. What is the expected dividend in four years? What is the terminal value in four years (P4)? What is the value of the stock now?

Walmart has just paid an annual dividend of $3.56. Dividends are expected to grow by 9% for the next 4 years, and then grow by 4% thereafter. Walmart has a required return of 9%. What is the expected dividend in four years? What is the terminal value in four years (P4)? What is the value of the stock now?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 16MC: Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid...

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