Cisco Tech is a growth company that has been paying a divide…
Cisco Tech is a growth company that has been paying a dividend of $1.00 per share for the last ten years and has recently paid the same $1 for the current year. Cisco has just created “new tech” that should revolutionize artificial intelligence and therefore has decided to pay higher dividends two years from today. That dividend will be $3.00, followed by a $6.00 dividend the next year, and a $9.00 dividend the following year. It is expected that the following dividend payments will increase by 9% annually. What is the value of Cisco if the required rate of return equals 14%?
Read Details