Question
A company will pay out an annual dividend of $5 next year. If the dividend will grow by 20% indefinitely, what should be the price
A company will pay out an annual dividend of $5 next year. If the dividend will grow by 20% indefinitely, what should be the price of a share today? Assume that the required rate of return for the stock is 25%.
A. $120.00 B. $20.00 D. $25.00 C. $100.00
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Private Equity Mathematics
Authors: Oliver Gottschalg
1st Edition
1908783508, 9781908783509
