Company price when the company supemormal growth end

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Reference no: EM132029437

Wignall Technologies is expected to grow at a rate of 35 per cent for the next 3 years and then settle to a constant growth rate of 7 per cent. The company will pay no dividend for the first 2 years and pay a dividend of $1.25 in year 3. What will be the company’s price when the company’s supemormal growth end? What is the price of the share today? The company’s required rate of return is 12 percent.

Reference no: EM132029437

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