The QuickFixCompany just paid a dividend of $1.25 and analysts expect the dividend to grow at its compound average growth rate of 10.72% forever. If you plan on holding the stock for just 7 years, and you have an expected rate of return of 14%, how much would you pay for the stock? Assume that the next owner also expects to earn 14% on his or her investment.
Show your work in the form of the calculator functions you use and the numbers you input into the calculator, and provide a brief explanation of what you have done/steps you have taken and why.
Please show how it would be inputed in a calculator and explain the steps
Calculating Price of Stock,
Using TVM Calculation,
Value of stock = 1.25(1.1072)/(0.14 - 0.1072)
Value of Stock = $42.20
The QuickFixCompany just paid a dividend of $1.25 and analysts expect the dividend to grow at...