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7) Last week Susu Company paid a dividend of 53.20. As a prospective firm, it is expected to grow 20% in the following 2 years
7) Last week Susu Company paid a dividend of 53.20. As a prospective firm, it is expected to grow 20% in the following 2 years Starting from second year, the growth of the company would decline to 6%. Due to strong financial position and relatively lower risk, investors require 12% from firm stock. Calculate the stock price today. Please show your calculations in detail 8) Explain why a bond would sell at a premium or at a discount. In other words, discuss which factors would cause a premium or discount sale. Also, please explain in which direction bond prices change over time. Why
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