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Company TYK forecasts that it will begin paying dividends seven years from now, at which point dividends are $1 per share. Thereafter, dividends are expected
Company TYK forecasts that it will begin paying
dividends seven years from now, at which point
dividends are $1 per share. Thereafter, dividends
are expected to
growth at a constant rate of 6% per year. The
discount rate for TYK is 10%. How much would
you pay for one share in Company TYK? (The
answer is not 14.11 or 13.60)
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