Question
A share just paid a dividend of $0.30.The dividend is expected to increase at an annual rate of 4% forever.If the required return is 10%,
A share just paid a dividend of $0.30.The dividend is expected to increase at an annual rate of 4% forever.If the required return is 10%, what is a fair value of this share today?
a.$0.31
b.$3.12
c.$5.20
d.$5.50
e.$5.00
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
