Question
BLT Ltd last paid a dividend of $0.20 three years ago.Today the company announced they will resume paying dividends.The planned dividends are $0.50 in one
BLT Ltd last paid a dividend of $0.20 three years ago.Today the company announced they will resume paying dividends.The planned dividends are $0.50 in one year's time, $0.60 in two years' time, and thereafter dividends will increase by a constant rate of 5% p.a. indefinitely.If the required rate of return for BLT is 12%, what is a fair price for one share today?
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
