Question
Nike just paid its annual dividend of $2.24 per share. You believe Nike's dividends will decrease at a rate of 3.0% per year going forward.
Nike just paid its annual dividend of $2.24 per share. You believe Nike's dividends will decrease at a rate of 3.0% per year going forward. Based on your research you estimate, an appropriate discount rate for Nike is 9.8%. Using the DDM, what is fair price for a share of Nike?
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Securitisation Derivatives A Practioner's Handbook
Authors: Mark Aarons, Vlad Ender, Andrew Wilkinson
1st Edition
1119532272, 978-1119532279
