Description of this paper

Sankey, Inc., is a fast growth stock and expects t...

Description

Solution


Question

Sankey, Inc., is a fast growth stock and expects to grow at an annual rate of 35 percent for the next three years. It then will settle to a constant-growth rate of 10 percent. The first dividend will be paid out in year 2 and be equal to $3.00. If the required rate of return is 18 percent, what is the current price of the stock? $38.51 $47.19 $51.56 $65.68

 

Paper#5794 | Written in 18-Jul-2015

Price : $25
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