Santa Klaus Toys just paid a dividend of $2.50 per share. The required return is 10.2 percent and the perpetual dividend growth rate is 3.4 percent. What price should this stock sell for five years from today?
Using Constant Growth Model,
Stock Price in Year 5 = 2.50(1.034)^6/(0.102 - 0.034)
Stock Price in Year 5 = $44.93
Santa Klaus Toys just paid a dividend of $2.50 per share. The required return is 10.2...
Santa Klaus Toys just paid a dividend of $2.50 per share. The required return is 10.2 percent and the perpetual dividend growth rate is 3.4 percent. What price should this stock sell for five years from today?
Santa Klaus Toys just paid a dividend of $3.60 per share. The required return is 10.4 percent and the perpetual dividend growth rate is 4.1 percent. What price should this stock sell for five years from today?
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