Tasha Smith is analyzing the shares of JKL Company. She has projected next year's income statement and estimates the Company will pay a dividend of $3.00 next year. She believes the company has a new product that will result in supernomal growth of 20% for two years. Once the market for this product is saturated, she expects that JKL's growth will fall to 3%, which is equal to the level of world economic growth. Ms. Smith determines that the required return on JKL should be 12%. What is the price of the stock today?
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