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European companies have the annoying propensity to pay one small and one large dividend per year, exactly 6 months apart. Vodafone Plc, for example, will
European companies have the annoying propensity to pay one small and one large dividend per year, exactly 6 months apart. Vodafone Plc, for example, will pay $0.37 at the end of June and $1.25 at the end of December. Every year, thereafter, both dividends are expected to grow by 3.5% year-over-year. The discount rate is 10.430% (EAR basis). Today is December 31. What is the applicable discount rate between now and the first dividend payment? % What is the applicable discount rate between now and the second dividend payment? % What is today's share price? European companies have the annoying propensity to pay one small and one large dividend per year, exactly 6 months apart. Vodafone Plc, for example, will pay $0.37 at the end of June and $1.25 at the end of December. Every year, thereafter, both dividends are expected to grow by 3.5% year-over-year. The discount rate is 10.430% (EAR basis). Today is December 31. What is the applicable discount rate between now and the first dividend payment? % What is the applicable discount rate between now and the second dividend payment? % What is today's share price
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