Dismal.Com is a producer of depressing Internet products. The company is currently not paying dividends, but its
Question:
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: