Nell corp is expanding fast and currently needs to retain

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Nell Corp is expanding fast and currently needs to retain all of earnings; hence it does not pay dividends. However investors expect Nell to begin paying divdends, starting with a dividend of $1.00 coming 3 years from today. The dividend should grow fast at a rate of 50% per year- during years 4 and 5; but after year 5 , growth should be a constant 8% per year. If the required return on Nell is 15% , what is the value of the stock today?

Reference no: EM13616665

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