Question
Omni Consumer Products just paid a dividend of 1.59 and anticipates a short term growth rate of 15% for year 1 and for year 2
Omni Consumer Products just paid a dividend of 1.59 and anticipates a short term growth rate of 15% 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 5%, what is the fair-value of a share if the required return is 11%?
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Fundamentals Of Investments
Authors: Charles J. Corrado
3rd Edition
0072829192, 978-0072829198
