Forral Company has never paid a dividend. But, the company plans to start paying dividends in two years—that is, at the end of Year 2. The first dividend is expected to equal $2 per share. The second dividend and every dividend thereafter are expected to grow at a 5 percent rate. If investors require a 15 percent rate of return to purchase Forral’s common stock, what should be the market value of its stock today?
Call Us: USA +1 862 207 3288