What is the current price of the common stock using dcf

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Reference no: EM13299461

Rentz RV's Inc (RRV) is presently enjoying relatively high growth because of a surge in the demand for recreational vehicles. Management expects earnings and dividends to grow at a rate of 30% for the next 7 years, after which high gas prices will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend , Do, was $2.00. RRV's required return is 12%. What is the current price of the common stock using DCF?

Reference no: EM13299461

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