Question
NCAAB Co. paid a dividend of $2 last year on earnings of $4. Dividends are expected to grow at a constant sustainable level of growth
NCAAB Co. paid a dividend of $2 last year on earnings of $4. Dividends are expected to grow at a constant sustainable level of growth of 4% per year. The equity discount rate for the firm is 10%. What is intrinsic value of NCAAB Co.'s shares?
| $34.67 |
| $41.54 |
| $53.12 |
| $20.20 |
None of the other answers is correct |
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
