Bollinger In. currently pays a dividend of $2.00 per share. Dividends are expected to grow at a rate of 12% per year for the next 5 years and then continue growing thereafter (indefinitely) at a rate of 6% per year.

Bollinger In. currently pays a dividend of $2.00 per share. Dividends are expected to grow at a rate of 12% per year for the next 5 years and then continue growing thereafter (indefinitely) at a rate of 6% per year.

What is the current value of a share of Bollinger s stock to an investor who requires a 15% required rate of return?








Leave a Reply