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

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

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Financial Modeling

ISBN: 9780262026284

3rd Edition

Authors: Simon Benninga

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