Ask Experts Questions for FREE Help!
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps
 
Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Accounting    Ask about another Subject  
 
PDA

42donald
Aug 19, 2008, 02:11 PM
A firms earnings and dividends are expected to double over the next 6 years. the current rates are $4 and $2.
A. Estimate the compounded annual dividend growth rate over the 6-year period?
B. Assume the forecasting growth rate in (A) will go forever, how much is this stock worth today if investor require a 18 % rate of return?