Question
A company has outstanding 1 million shares with a total market value of $20 million. The firm is expected to pay $1 million of dividends
A company has outstanding 1 million shares with a total market value of $20 million. The firm is expected to pay $1 million of dividends next year, and thereafter the amount paid out is expected to grow by 5% a year in perpetuity. What is the expected dividendin year 3 ?
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
