Question

Carter Communications does not currently pay a dividend. You expect the company to begin paying a...

Carter Communications does not currently pay a dividend. You expect the company to begin paying a dividend of $3.20 per share in 8 years, and you expect dividends to grow perpetually at 4.2 percent per year thereafter. If the discount rate is 15 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Answer #1

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The value of the stock currently shall be $ 11.14

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