Question
Mary expects the next three annual dividends for (ME) to be $0.76, $0.85, and $0.95. Then she expects the dividend to grow at an initial
Mary expects the next three annual dividends for (ME) to be $0.76, $0.85, and $0.95. Then she expects the dividend to grow at an initial rate of 18% decreasing at a constant rate to 2% over a 12 year period. After year 15, She expects the dividend growth rate to be 2%. The required rate of return for ME is 10%. What is the share value of ME?
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
