Home / Questions / Inman, Inc. is a growing company and does not expect to initiatedividends for 10 years, at
Inman, Inc. is a growing company and does not expect to initiatedividends for 10 years, at which time it will pay an annualdividend of $5.00 per share (i.e. D10= $5.00). At that time, Inmanexpects its dividends to grow at 6% forever. You are interested inpurchasing Inman stock if you can earn an 11% required rate oreturn.
If you buy Inman stock today and hold it for 10 years, whatwould you expect the price to be at that time (P10)?
What is the most you would pay today (P0) for one share of Inmanstock?
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Dec 04 2019 View more View Less
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