The SkyLink Corporation just paid a dividend of $2.75 to its that it expects the dividends to grow by 30% per year for the next three years, then drop to a growth rate of 18% for an additional two years, after which it expects the dividends to converge to the industry median growth rate of 7% per year till infinity. If investors are expecting 12% per year on WedLink's stock, calculate the current stock price.

The SkyLink Corporation just paid a dividend of $2.75 to its that it expects the dividends to grow by 30% per year for the next three years, then drop to a growth rate of 18% for an additional two years, after which it expects the dividends to converge to the industry median growth rate of 7% per year till infinity. If investors are expecting 12% per year on WedLink's stock, calculate the current stock price.

Name: The SkyLink Corporation just paid a dividend of $2.75 to its common s
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Description: The SkyLink Corporation just paid a dividend of $2.75 to its common shareholders, and announcedthat it expects the dividends to grow by 30% per year for the next three years, then drop to agrowth rate of 18% for an additional two years, after which

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 17P

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