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katovenus [111]
3 years ago
11

Peterson Packaging Inc. does not currently pay dividends. The company will start with a ​$0.70 dividend at the end of year three

and grow it by 10​% for each of the next six years. After six years of​ growth, it will fix its dividend at ​$1.36 forever. If you want a 15​% return on this​ stock, what should you pay today given this future dividend​ stream?
Mathematics
1 answer:
charle [14.2K]3 years ago
5 0
$1.40 because I think so
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