Value of future cash flows

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Reference no: EM131985514

D1= .77

D2=.347

D3=.9317

D4=1.02487

Value of Future Cash Flows

A firm recently paid a $0.70 annual dividend. The dividend is expected to increase by 10 percent in each of the next four years. In the fourth year, the stock price is expected to be $32.

If the required return for this stock is 13.5 percent, what is its current value? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131985514

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