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Assume that Universal's dividend in the second half of 2021 will be the same amount as the dividend paid in May 2021. Further assume
Assume that Universal's dividend in the second half of 2021 will be the same amount as the dividend paid in May 2021. Further assume that dividends in 2022, 2023 and 2024 will be the same amount as the total dividend paid in 2021. After 2024 dividends will increase by 2% p.a. and the required return is 8%. What is a fair price for a Universal share in 2021? (Assume the full 2021 dividend has already been paid).
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To calculate the fair price for a Universal share in 2021 we first need to determine the present ...
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
17th edition
007802577X, 978-0078025778
