Question
Omni Consumer Products just paid a dividend of 1.37 and anticipates a short term growth rate of 16% for year 1 and for year 2
Omni Consumer Products just paid a dividend of 1.37 and anticipates a short term growth rate of 16% for year 1 and for year 2 (dividends 1 and 2).
Assuming that after year 2, Omni's contract with the City of Detroit will give it a constant growth rate of 4%, what is the fair-value of a share if the required return is 11%?
Answer to two decimal places and no $ sign
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
