Question
Omni Consumer Products just paid a dividend of 1.66 and anticipates a short term growth rate of 16% for year 1 and for year 2
Omni Consumer Products just paid a dividend of 1.66 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 5%, what is the fair-value of a share if the required return is 12%?
Answer to two decimal places and no $ sign
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
17th Edition
126001391X, 978-1260013917
