3. Dismal.com is a producer of depressing Internet products. The company is not currently paying dividends, but

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3. Dismal.com is a producer of depressing Internet products. The company is not currently paying dividends, but its chief financial officer thinks that starting in 3 years it can pay a dividend of $15 per share, and that this dividend will grow by 20% per year. Assuming that the cost of equity of Dismal.com is 35%, value a share based on the discounted dividends.

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Financial Modeling

ISBN: 9780262024822

2nd Edition

Authors: Simon Benninga

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