Question
A share is expected to pay a dividend of $1.50 in one year. This dividend is expected to increase at an annual rate of 5%
A share is expected to pay a dividend of $1.50 in one year. This dividend is expected to increase at an annual rate of 5% forever. If the required return is 15%, what is a fair value of this share today? a. $15.75 b. $1.50 c. $16.50 d. $15.00 e. $10.00
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Accounting Essentials For Hospitality Managers
Authors: Chris Guilding
3rd Edition
0415841097, 978-0415841092
