Question
Omni Consumer Products just paid a dividend of 1.53 and anticipates a short termgrowth rate of 16% for year 1 andfor year 2 (dividends 1
Omni Consumer Products just paid a dividend of 1.53 and anticipates a short termgrowth rate of 16% for year 1 andfor year 2 (dividends 1 and 2).
Assuming that after year 2, Omni's contract with the City of Detroit will give ita constantgrowth rate of 3%, what is the fair-value of a share if the required returnis13%?
Answer to two decimal places andno $ sign
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Corporate Finance Core Principles And Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
6th Edition
1260571122, 978-1260571127
