Cellular Talk is a new company in a rapidly growing industry. The company plans to increase its annual dividend by 25% per year for the next three years, then set the growth rate at 6% per year indefinitely. The company recently paid its annual dividend of $0.80 per share. What is the present value of a share of this company's stock if the required rate of return is 17%?

A) $3.71
B) $4.32
C) $4.56
D) $5.02



Answer :

Other Questions