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Business, 14.04.2020 18:42 tus

Robinson Inc. is a fast growing technology company. Management projects rapid growth of 20 percent for the next four years. After that, a constant-growth rate of 6 percent is expected. The firm expects to pay its first dividend of $5.00 three years from now. Dividends will grow at the same rate as the firm and the required rate of return on stocks with similar risk is 20 percent. Required: a) Determine the current price per share. b) If the price of the stock is currently $ 40.00, would you recommend that the stock be purchased

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