Question
Blackhawk just paid a dividend of $2.56 and is expected to increase the future dividends at a rate of 5% per year indefinitely.If you as
Blackhawk just paid a dividend of $2.56 and is expected to increase the future dividends at a rate of 5% per year indefinitely.If you as a shareholder require 15% per year what is the current price per share?HInt: A dividend was "just paid", so that means D at time zero.
Step by Step Solution
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Step: 1
To calculate the current price per share using the dividend discount model DDM we can use the fo...
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Step: 2
Step: 3
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Business Finance
Authors: Eddie McLaney
11th Edition
1292134402, 9781292134406
