A stock that currently does not pay a dividend is expected to pay its first dividend of $1.00 five years from today. Thereafter, the dividend is expected to grow at an annual rate of 25% for the next three years and then grow at a constant rate of 5% per year thereafter. The required rate of return is 10.3%. The value of the stock today is closest to: A) $20.65. B) $22.72. C) $23.87. Could someone demonstrate how this can be solved with a financial calculator? Thanks!

I'm pretty sure that there isn't a way, you just have to grind it out piece by piece. Correct me if I'm wrong, it would save a lot of time.

A CFA Level 1 Discussion About Multi-Period DDM With Financial Calculator

This topic has 4 replies, 3 voices, and was last updated Oct-1810:57 pm by Pahtsan.

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