The Bovespa (Brazilian equity index) is at 15,000. The dividends on the index last year were 5%
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The Bovespa (Brazilian equity index) is at 15,000. The dividends on the index last year were 5% of the index value, and analysts expect them to grow 15% a year in real terms for the next five years. After the fifth year, the growth is expected to drop to 5% in real terms in perpetuity. If the real riskless rate is 6%, estimate the implied equity risk premium in this market.
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Investment Valuation Tools And Techniques For Determining The Value Of Any Asset
ISBN: 9781118011522
3rd Edition
Authors: Aswath Damodaran
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