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Stock price calculation

label Business & Finance
account_circle Unassigned
schedule 0 Hours
account_balance_wallet $5

Dividends paid $2.00 & are expected to grow @ 25% rate for the next 3 yrs. with growth rate falling constantly 5% after. If required returnsis 7% what's the stock price? What's the future dividends & stock price used to get the price?

Apr 3rd, 2015

Do 0 $2.00 Price at 4th year PV of cash flows
D1 1 $2.50   $2.34
D2 2 $3.13   $2.73
D3 3 $3.91   $3.19
D4 4 $3.71 $29.37 $25.24
Current stock price $33.50

May 27th, 2015

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Apr 3rd, 2015
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Apr 3rd, 2015
Jun 28th, 2017
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