You are considering buying a stock of Lululemon. Lululemon has just issued a dividend of Sx. You want to have a rate of return of 7.1% on your investment on Lululemon, so you are willing & to pay at most $141 for a stock of Lululemon. You believe that Lululemon will grow at a constant rate of 8.9% for the next 3 years and 5.6% after that indefinitely. What is the value of X? Round your answer in at least 2 decimal places. (e.g. S123.45678 should be entered as 123.46)

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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Ef 246.

You are considering buying a stock of Lululemon. Lululemon has just issued a
dividend of Sx. You want to have a rate of return of 7.1% on your investment on
Lululemon, so you are willing & to pay at most $141 for a stock of Lululemon. You
believe that Lululemon will grow at a constant rate of 8.9% for the next 3 years
and 5.6% after that indefinitely. What is the value of X?
Round your answer in at least 2 decimal places. (e.g. S123.45678 should be
entered as 123.46)
Transcribed Image Text:You are considering buying a stock of Lululemon. Lululemon has just issued a dividend of Sx. You want to have a rate of return of 7.1% on your investment on Lululemon, so you are willing & to pay at most $141 for a stock of Lululemon. You believe that Lululemon will grow at a constant rate of 8.9% for the next 3 years and 5.6% after that indefinitely. What is the value of X? Round your answer in at least 2 decimal places. (e.g. S123.45678 should be entered as 123.46)
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