Phoenix Motor Corp was hit by a crisis four years ago and stopped paying dividends....
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Phoenix Motor Corp was hit by a crisis four years ago and stopped paying dividends. Now, Phoenix Motor Corp. has just announced a $1 per share dividend. Dividends will increase to a "normal level" of $3 when the company completes its recovery over the next three years. After that, dividend growth will settle down to a moderate long-term growth rate of 6%. Assume dividends of $1,$2 and $3 for years 1,2,3. Phoenix stock is selling at $50 per share. Write down an equation from which the interest rate being used to discount Phoenix's future dividends can be solved. If you are able to solve it using a computer (Excel, matlab, etc.), do it! Don't worry if you can't, just provide a guess
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