What is value per share of your firm stock

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Reference no: EM131992029

Assume that the average firm in your company's industry is expected to grow at a constant rate of 5.4% and its dividend yield is 8.6%. Your company is about as risky as the average firm in the industry, but it has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 44% this year and 22% the following year, after which growth should match the 5.4% industry average rate. The last dividend paid (D0) was $1.9. What is the value per share of your firm's stock?

Reference no: EM131992029

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