Nonconstant Dividend Growth Valuation Simpkins Corporation does not pay any dividende because it is expanding...
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Nonconstant Dividend Growth Valuation Simpkins Corporation does not pay any dividende because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of 12.00 coming 3 years from today. The dividend should grow rapidly + at a rate of 70% per year - during Years 4 and 5. After Year 5, the company should grow at a constant rate of 9% per year. tr the required return on the stock is 12%, what is the value of the stokk today? (Assume the market is in equebrlum with the required return equat to the expected return.) Do not round intermediste calcilations. Round your answer to the nearest cent
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