Question
A preference share is going to pay a dividend of $2 in one year. Use the dividend discount model (DDM), calculate the expected share price
A preference share is going to pay a dividend of $2 in one year. Use the dividend discount model (DDM), calculate the expected share price in three years if the rate of return is 7% p.a. (Round your answer to 2 decimal places. Do not include the $ symbol. Do not use comma separators. E.g. 1234.56)
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
