How much investors will be willing to pay

Reference no: EM132008367

Question: National Cycling Corporation (NCC) has been growing at a rate of 25% per year in recent years. This same growth rate is expected to last for another two years. The growth rate will then level off to a normal rate of 6% per year indefinitely. The company just paid a dividend of $2 per share on its common stock. How much investors will be willing to pay today for each share of NCC's common stock if they require a rate of return of 14%?

Reference no: EM132008367

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