Thirsty Cactus Corp. just paid a dividend of $2.30 per share. The dividends are

Question

Thirsty Cactus Corp. just paid a dividend of $2.30 per share. The dividends are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the price of the stock today? (Round your answer to 2 decimal places. (e.g., 32.16))

  Stock price

$

Thirsty Cactus Corp. just paid a dividend of $2.30 per share. The dividends are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the price of the stock today? (Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

  Stock price

$   

  Stock price

$   

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