Question
Gandolf LTD (GL) is expected to pay its first dividend of $0.50 per share next year. The dividend is then expected to remain at $0.50
Gandolf LTD (GL) is expected to pay its first dividend of $0.50 per share next year. The dividend is then expected to remain at $0.50 for a further 3 years( years 2, 3 ad 4) after which it is expected to grow at a constant 2.5% p.a. forever. Shareholder require a 12% p.a. return. Calculate the current value of a share in Gandolf Ltd.
ACST101 S1 2018
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Mathematics For Business
Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen
8th Edition
0321357434, 9780321357434
