Question
ABC Ltd has just now declared dividends of $ 6.15 per share. It is estimated that their dividends would grow @ 8% p.a. for the
ABC Ltd has just now declared dividends of $ 6.15 per share. It is estimated that their dividends would grow @ 8% p.a. for the next 8 years, then @ 6% p.a. for the next 3 years and @ 2% p.a thereafter.
The rate of interest or the discount rate is estimated at 12% p.a. for the next 5 years, 9% for next 4 years and 7% thereafter.
Determine the Current share price of ABC Ltd
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College Accounting, Chapters 1-27
Authors: James A. Heintz, Robert W. Parry
21st Edition
1285055411, 9781285055411
