Apocalyptica Corporation is expected to pay the following dividends over the nex

Question

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6.60, $17.60, $22.60, and $4.40. Afterwards, the company pledges to maintain a constant 5.25 percent growth rate in dividends, forever.

If the required return on the stock is 7 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6.60, $17.60, $22.60, and $4.40. Afterwards, the company pledges to maintain a constant 5.25 percent growth rate in dividends, forever.

If the required return on the stock is 7 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

P4 = ($4.40

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