Question

If company x, last dividend, d0, was $0.50, and the company expects to grow at an annual rate of 4% in the first and second years, and beginning with the third year it should attain a 5% annual growth rate which it will sustain thereafter. The required return for company is 8% p.A. Calculate the value of the stock today

Answer 1

yes ans is 9 p/A after givin it