Question
Dora Trading Co plans to pay a dividend in year 2 of $0.67.The dividend is expected to grow at a constant rate of 8% forever.
Dora Trading Co plans to pay a dividend in year 2 of $0.67.The dividend is expected to grow at a constant rate of 8% forever.
An investor requires a return of 14%.
How much is the share worth today ? Ignore $ sign in your answer and round your answer to TWO decimal places.
I calculated and got 8.593...but its wrong?
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
