Compute the price of the stock


Question: The Win Co. has just rewarded a dividend of $5.25 per share. The company will increase its dividend by 14 percent next year. The company will then reduce its dividend growth rate by three percent each year until the dividend reaches the industry average of five percent growth. Thereafter, the company will maintain that dividend growth, forever. The required rate of return for the Win Co. is 14 percent. Compute the price of the stock?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Compute the price of the stock
Reference No:- TGS016220

Expected delivery within 24 Hours