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View Full Version : Mitts cosmetics Co.'s stock price is $58.88, and it recently paid a $2 dividend. This


TaeyangLove
Jan 26, 2010, 08:37 PM
Mitts cosmetics Co.'s stock price is $58.88, and it recently paid a $2 dividend. This dividend is expected to grow by 25 percent for the next 3 years, and then grow forever at a constant rate, g, and r=12%. At what constant rate is the stock expected to grow after year 3?

manderson0078
Feb 19, 2011, 12:02 PM
Mitts cosmetics Co.'s stock price is $58.88, and it recently paid a $2 dividend. This dividend is expected to grow by 25 percent for the next 3 years, and then grow forever at a constant rate, g, and r=12%. At what constant rate is the stock expected to grow after year 3?