I am stuck on this problem and need to put into excel with formulas. Please help. You want to buy SuperTech Inc. stock. They pay quarterly dividends, with the next dividend of $0.40 per share being paid later today. You believe that, during the next 6 years, their quarterly dividends will grow by 20% APR, compounded annually. But after 6 years, their quarterly dividends will grow more slowly… only at 4% APR, compounded annually. If the discount rate on this stock is 12% APR, compounded annually, then what would be a fair price for this stock right now?

I am stuck on this problem and need to put into excel with formulas. Please help. You want to buy SuperTech Inc. stock. They pay quarterly dividends, with the next dividend of $0.40 per share being...

I am stuck on this problem and need to put into excel with formulas. Please help.

You want to buy SuperTech Inc. stock. They pay quarterly dividends, with the next dividend of $0.40 per share being paid later today. You believe that, during the next 6 years, their quarterly dividends will grow by 20% APR, compounded annually. But after 6 years, their quarterly dividends will grow more slowly… only at 4% APR, compounded annually. If the discount rate on this stock is 12% APR, compounded annually, then what would be a fair price for this stock right now?

Jun 04, 2022