Worldwide Inc, a large conglomerate, has decided to acquire another firm
Analysts are forecasting a period (2 years) of extraordinary growth (20%), followed by another 2 years of unusual growth (10 %), and finally a normal (sustainable) growth rate of 6% annually. If the last dividend was D(0 ) = $1.00 per share and the required rate is 8%, what should the market price be today?
A) $93.70
B) $72.76
C) $99.66
D) $98.57
E) $68.87
B
Business
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