Question
MBA Inc is expected to have dividend distribution policies as below: - MBA Inc will pay out cash dividend 1 per share per year in
MBA Inc is expected to have dividend distribution policies as below: - MBA Inc will pay out cash dividend 1 per share per year in the next two years - In the end of the 3rd year, MBA Inc will pay out cash dividend 2 per share - From the end of the 3rd year, MBA Inc will continuously pay cash divided at 5% constant growth rate per annum
What is the theoretical price of stock of MBA Inc if the required rate of return is 10% per annum? Please show your working.
****PLEASE DO NOT ANSWER IF YOU ALREADY DID. I'm getting a second opinion on this. Thanks.
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
