What would compu be willing to pay for cellus stock

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Reference no: EM13890728

CellU, the company CompU is looking at purchasing, expected their dividend to grow at a rate of 35 percent for the next four years, then to drop to a growth rate of 15 percent for 2 more years, and then settle down to a 10 percent growth rate thereafter. CellU just paid a dividend of $2.50. Investors’ required rate of return is 12 percent. What would CompU be willing to pay for CellU’s stock?

Reference no: EM13890728

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