Question
How do I calculate this? (not using excel) Ms. Manners Catering (MMC) has paid a constant $1.50 per share dividend to its common stockholders for
How do I calculate this? (not using excel)
Ms. Manners Catering (MMC) has paid a constant $1.50 per share dividend to its common stockholders for the past 25 years. MMC expects to continue this policy for the next two years, and then begin to increase the dividend at a constant rate equal to 2 percent per year into perpetuity. Investors require a 12 percent rate of return to purchase MMC's common stock. What is the market value of MMC's common stock?
The answer is $14.73 but I need the process
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Cases In Financial Management
Authors: I.M. Pandey
3rd Edition
0071333428, 978-0071333429
