10. Constant-growth DCF model (S4.4) Pharmecology just paid an annual dividend of $1.35 per share. Its a...

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10. Constant-growth DCF model (S4.4) Pharmecology just paid an annual dividend of $1.35 per share. It’s a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 2.75% per year.

a. What is Pharmecology’s current stock price? The nominal cost of capital is 9.5%.

b. Redo part

(a) using forecasted real dividends and a real discount rate.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 02:01 AM

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10. Constant-growth DCF model (S4.4) Pharmecology just paid an annual dividend of $1.35 per share. Its a...

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Principles Of Corporate Finance

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