1
answer
0
watching
251
views
22 Apr 2018
Nonconstant growth
Carnes Cosmetics Co.'s stock price is $70.24, and it recently paid a $1.25 dividend. This dividend is expected to grow by 29% for the next 3 years, then grow forever at a constant rate, g; and rs = 11%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.
%
Nonconstant growth
Carnes Cosmetics Co.'s stock price is $70.24, and it recently paid a $1.25 dividend. This dividend is expected to grow by 29% for the next 3 years, then grow forever at a constant rate, g; and rs = 11%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.
%
Sixta KovacekLv2
25 Apr 2018
