asked 157k views
1 vote
Peterson Packaging Inc. does not currently pay dividends. The company will start with a ​$0.70 dividend at the end of year three and grow it by 10​% for each of the next six years. After six years of​ growth, it will fix its dividend at ​$1.36 forever. If you want a 15​% return on this​ stock, what should you pay today given this future dividend​ stream?

asked
User Giaset
by
8.6k points

1 Answer

6 votes
$1.40 because I think so
answered
User Sukumar MS
by
8.0k points
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