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The In-Tech Co

question 3

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The In-Tech Co. has just paid a dividend of $1 per share. The dividends are expected to grow at 25% per year for the next three years and at the rate of 5% per year thereafter. If the required rate of return on the stock is 18%(APR) , what is the current value of the stock?


Definitions:

Conscious Feelings

Emotional experiences that are within one's immediate awareness.

Sympathetic Nervous system

A part of the autonomic nervous system that activates the body's responses under stress, such as increasing heart rate and redirecting blood flow.

Parasympathetic Nervous System

A component of the autonomic nervous system responsible for energy conservation by decreasing the heart rate, enhancing the activity of intestines and glands, and easing the muscles of sphincters in the digestive system.

Somatic Nervous system

A part of the peripheral nervous system associated with the voluntary control of body movements via the use of skeletal muscles.

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