Growth rate indefinitely, Thirsty Cactus Corp. just paid a

Growth rate indefinitely

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Reference no: EM13909065

Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 40 percent for the next 9 years and then level off to a 7 percent growth rate indefinitely.

Required: If the required return is 13 percent, what is the price of the stock today?

Reference no: EM13909065

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Growth rate indefinitely : Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 40 percent for the next 9 years and then level off to a 7 percent growth rate indefinitely. what is the price of the stock today?

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