Question
Dividend Valuation Approach - An analyst's forecast for a company's dividends for the next three years are: D1 = $8,800 D2 = $9,100 and D3
Dividend Valuation Approach - An analyst's forecast for a company's dividends for the next three years are:
D1 = $8,800 D2 = $9,100 and D3 = $10,400
If the analyst uses an Re = 13% and g = 5% for the company, what would be the continuous growth (in dollars) for the company using the dividend approach model?
| A. | $94,956 |
| B. | $59,472 |
| C. | $120,796 |
| D. | $130,000 |
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School Finance And Business Management Optimizing Fiscal Facility And Human Resources
Authors: Craig A. Schilling, Daniel R. Tomal
2nd Edition
1475844026, 978-1475844023
