CX Enterprises has the following expected dividends: $1.15 in one year, $1.23 in two years, and $1.29 in three years. After that, its dividends are expected to grow at 3.9% per year forever (so that year 4's dividend will be 3.9% more than $1.29 and so on). If CX's equity cost of capital is 11.7%, what is the current price of its stock? (Round to the nearest cent.)
CX Enterprises has the following expected dividends: $1.15 in one year, $1.23 in two years, and $1.29 in three years. After that, its dividends are expected to grow at 3.9% per year forever (so that year 4's dividend will be 3.9% more than $1.29 and so on). If CX's equity cost of capital is 11.7%, what is the current price of its stock? (Round to the nearest cent.)
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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CX Enterprises has the following expected dividends: $1.15 in one year, $1.23 in two years, and $1.29 in three years. After that, its dividends are expected to grow at 3.9% per year forever (so that year 4's dividend will be 3.9% more than $1.29 and so on). If CX's equity cost of capital is 11.7%, what is the current price of its stock? (Round to the nearest cent.)
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