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Could I Industries just paid a dividend of $1.97 per share. The dividends are expected to...

Could I Industries just paid a dividend of $1.97 per share. The dividends are expected to grow at a rate of 18 percent for the next three years and then level off to a growth rate of 7 percent indefinitely. If the required return is 13 percent, what is the value of the stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Answer #1

Using the Dividend discount model the terminal value is calculated which is Do(1+g)/r-g and all the other formulas are given in the excel itself.

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