A7X Corp. just paid a dividend of $2.40 per share. The dividends are expected to grow at 16 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 15 percent, what is the price of the stock today

50.26

Explanation:

We can calculate the price of the stock by summing up the present values of all years. To calculate PV of each year we need to grow the dividend value by 6% and then multiply it to the Present value factor.

Year   D0Value of dividend  PVF (15%)            Value

1    D1                   2.78                 0.869                         2.42

2    D2           3.23                 0.756                              2.44

3    D3            3.75                 0.657                         2.46

4    D4            4.35                 0.571                               2.48

5    D5             5.04                 0.497                         2.51

6       D6             5.85                 0.432                         2.53

7    D7             6.78                 0.375                         2.55

8    D8              7.87                 0.326                         2.57

9    D9              8.34                 0.09                      30.29

Stock value                                                          50.26

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!