(Non-constant growth)Pettyway Corp’s next annual dividend (D1) is expected to be $4. After that, the growth rate in dividends over the next three years is forecasted at 6%. And after that, Pettyway’s growth rate in dividends is expected to be 8%. The required return is 11%. Then the value of the stock is $__________.

(Non-constant growth)Pettyway Corp’s next annual dividend (D1) is expected to be $4. After that, the growth rate in dividends over the next three years is forecasted at 6%. And after that, Pettyway’s growth rate in dividends is expected to be 8%. The required return is 11%. Then the value of the stock is $__________.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 16MC

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