Stock Value Today Assignment
February 18th, 2020
Some investors expect Mazzeo Industries to have an irregular dividend pattern for several years and then to grow at a constant rate. Dividends are expected to grow by 25% for two years and 20% for the next three years. After that, growth will fall to a constant rate of 7%. Last year’s dividend was $1.00. This amount of risk justifies a 14% required rate of return. If these projections are correct, what should the stock be valued at today?
USE AT LEAST 4 DECIMAL PLACES
$20.38. Get Finance homework help today