Berhad just paid dividend of RM 4 on its stock. Below are the expected growth of dividend per share from year 1 to year
Berhad just paid dividend of RM 4 on its stock. Below are the expected growth of dividend per share from year 1 to year 4. At year 5, dividend is expected to grow 5% per year, indefinitely. The beta of the company is 1.5. Market risk premium is 10% and risk free rate is 4 %. Calculate the current fair value of PA Berhad stock. If the market price of the share is RM30, should you buy the stock? Year 1 2 3 4 Growth of dividend per share 10% 0% 12% -4%
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To calculate the current fair value of PA Berhad stock using the dividend discount model DDM we need ...
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Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
