Question
An investor expects a company to generate the following earnings per share: Year 1: $1.00 Year 2: $1.50 Year 3: $2:00 Year 4: $2.50 Dividends
An investor expects a company to generate the following earnings per share:
Year 1: $1.00
Year 2: $1.50
Year 3: $2:00
Year 4: $2.50
Dividends in each of the years shown above are based on a 50% payout ratio. If the investor anticipates selling the shares for $50 at the end of Year 4, how much would he or she be willing to pay for these shares today?
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Codes Of Finance
Authors: Vincent Antonin Lépinay
1st Edition
0691151504, 978-0691151502
