CX Enterprises has the following expected dividends: $1.05 in one year, $1.21 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 3.6% per year forever (so that year 4's dividend will be 3.6% more than $1.32 and so on). If CX's equity cost of capital is 11.6%, what is the current price of its stock? The price of the stock will be $ (Round to the nearest cent.)

CX Enterprises has the following expected dividends: $1.05 in one year, $1.21 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 3.6% per year forever (so that year 4's dividend will be 3.6% more than $1.32 and so on). If CX's equity cost of capital is 11.6%, what is the current price of its stock? The price of the stock will be $ (Round to the nearest cent.)

Intermediate Algebra

10th Edition

ISBN:9781285195728

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter11: Exponential And Logarithmic Functions

Section11.2: Applications Of Exponential Functions

Problem 27PS

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