Software company is a new start-up company and wil not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $2.50 with a constant growth rate...


Software company is a new start-up company and wil not pay dividends for the first five years of operation.  It will then institute an annual cash dividend policy of $2.50 with a constant growth rate of 5% with the first dividend at the end of year six.  The company will be in business for 25 years total.  What is the stock price if an investory wants a 10% return? a 15% return?



Jun 08, 2022
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