Question
ABD ltd expected dividend per share of its ordinary share for the next two years will be $1.0 and $3 respectively. Then the dividend will
ABD ltd expected dividend per share of its ordinary share for the next two years will be $1.0 and $3 respectively. Then the dividend will grow by 14% per annum till infinity. If investors require a rate of return of 21% what is the fair value of ABD ordinary share today?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
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