(SOLVED) Currently Non Stick Gum Inc pays no dividend However analysts fore


Question Description:

$19

Currently, Non-Stick Gum Inc. pays no dividend. However, analysts foreĀ· cast that in 4 years Non-Stick will pay its first annual dividend of $.50 and dividends will grow at 6% per year thereafter. If stocks with similar risk to the equity of Non-Stick Gum currently earn a return of 12%, estimate the current share price of Non-Stick.

Answer

$19