Homework answers / question archive / The dividend for King's ordinary shares is expected to be $2

The dividend for King's ordinary shares is expected to be $2

Business

Share With

The dividend for King's ordinary shares is expected to be $2.90 next year. This dividend is expected to grow at a rate of 7% for the following two years. After that growth should drop to 4% and continue at 4% to infinity. If the required rate of return on these shares is 12 %, what is the current value of the firm's shares?