CX Enterprises has the following expected dividends: $1.03 in one year, $1.18 in two years, and $1.26 in three years. After that, its dividends are expected to grow at 4.5% per year forever (so that year 4 's dividend will be 4.5% more than $1.26 and so on). If CX's equity cost of capital is 12.4%, what is the current price of its stock? The price of the stock will be $. (Round to the nearest cent.) Try again. The present value of the growing dividends at the end of year three is: PV3=rEgDiv4 The price of the stock will be: P0=1+rDiv1+(1+r)2Div2+(1+r)3Div3+PV3.
CX Enterprises has the following expected dividends: $1.03 in one year, $1.18 in two years, and $1.26 in three years. After that, its dividends are expected to grow at 4.5% per year forever (so that year 4 's dividend will be 4.5% more than $1.26 and so on). If CX's equity cost of capital is 12.4%, what is the current price of its stock? The price of the stock will be $. (Round to the nearest cent.) Try again. The present value of the growing dividends at the end of year three is: PV3=rEgDiv4 The price of the stock will be: P0=1+rDiv1+(1+r)2Div2+(1+r)3Div3+PV3.