An investor is trying to determine the share price for ABC Boat Co. with the variable-growth dividend
Fantastic news! We've Found the answer you've been seeking!
Question:
An investor is trying to determine the share price for ABC Boat Co. with the variable-growth dividend discount model. He anticipates the dividends will grow at 10% per year for the next 2 years, drop to 7% growth for 3 years, and continue to grow at 3% forever. Dividend (current year) = $4; Expected rate of return = 12%. What is the intrinsic value of the stock now?
Posted Date: