Question
company A plans to pay a dividend of 2.50 rupees in-year 1, 2.63 rupees in year 2, 2.83 rupees in year 3.It is expected that
company A plans to pay a dividend of 2.50 rupees in-year 1, 2.63 rupees in year 2, 2.83 rupees in year 3.It is expected that dividend will growth by 5% for the next 2 years and at 9% therefore. if the rate of return is 12% calculate the value of company share.
Step by Step Solution
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Step: 1
To calculate the value of a companys share using the dividend discount model DDM we need to discount ...
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Engineering Economic Analysis
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
9th Edition
978-0195168075, 9780195168075
