290,464 views
32 votes
32 votes
Peterson Packaging Inc. does not currently pay dividends. The company will start with a ​$0.70 dividend at the end of year three and grow it by 10​% for each of the next six years. After six years of​ growth, it will fix its dividend at ​$1.36 forever. If you want a 15​% return on this​ stock, what should you pay today given this future dividend​ stream?

User Helen Hakobyan
by
3.3k points

1 Answer

8 votes
8 votes
$1.40 because I think so
User Tal Kanel
by
2.9k points