Innova Tech (IT) company is getting well known among analysts due to its planned dividend payment. The company plans to pay $0.80 a share
Innova Tech (IT) company is getting well known among analysts due to its planned dividend payment. The company plans to pay $0.80 a share next year and $1.60 a share the following year. After that, it plans to pay constant $2 per share indefinitely. What is the price of IT's stock today if the market rate of return on similar stock is 12%? What would be the impact on the price of IT stock if the market is uncertain of whether the company will be providing mentioned dividends in the future, due to unfavorable economic situation? Please explain. (maximum 15 minutes)
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Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
