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Peterson packaging inc does not currently pay dividends the company will start paying 1.25 dividend at...

Peterson packaging inc does not currently pay dividends the company will start paying 1.25 dividend at the end of year 3 and grow it by 10% for 6 years after 6 years it will fix to 2.44 dividend forever if you want 15% return what should you pay for it today?

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Answer #1

D1 D2 $ . D3 $ 1.25 D4 $ 1.38 D5 $ 1.51 D6 $ 1.66 D7 $ 1.83 D8 $ 2.01 D9 $ 2.21 D10 $ 2.44 Stock price in 9 years $ 16.27 2.4

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