Question
Current dividend = $1.80, required return = 11%, dividends are expected to grow at 8% annually for 5 years and followed by 0% growth in
Current dividend = $1.80, required return = 11%, dividends are expected to grow at 8% annually for 5 years and followed by 0% growth in year 6 to infinity. Find out the price of the share.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To find the price of the share we can use the dividend discount model DDM formula which is textPrice ...
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
