Business
Business, 13.11.2019 23:31, liyahmakay1853

Hi-tek is a young start-up company. no dividends will be paid on the stock over the next 15 years, because the firm needs to plow back its earnings to fuel growth. the company plans to pay a $6 per share dividend in 16 years and will increase the dividend by 4 percent per year thereafter. what is the current share price if the required return on this stock is 16 percent?
a. $5.62.
b. $8.59.
c. $5.40.
d. $50.00.

answer
Answers: 3

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Hi-tek is a young start-up company. no dividends will be paid on the stock over the next 15 years, b...

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