Elves Corporation has just paid a dividend of $1.25.Dividends are expected to grow at 15% for years 1-3, 30% for years 4-6, 10% for years 7-8, and 4% thereafter.What should the share sell for today if the required return is 16%?

Question

Quizplus · Accepted Answer

The Answer of Elves Corporation has just paid a dividend of $1.25.Dividends are expected to grow at 15% for years 1-3, 30% for years 4-6, 10% for years 7-8, and 4% thereafter.What should the share sell for today if the required return is 16%?

Elves Corporation Has Just Paid a Dividend of $1