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please aswer Next Year's Dividend Req'd Rate of Return - Dividend Growth Rate Dividend (trailing 12 months) Dividend Growth Rate Dividend (next year) Required Rate
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Next Year's Dividend Req'd Rate of Return - Dividend Growth Rate Dividend (trailing 12 months) Dividend Growth Rate Dividend (next year) Required Rate of Return (discount rate) INTRINSIC VALUE (Share Price:Value Estimate) = Share Value 1.02 4.5 40.80 What will cause the share value to RISE ? 1) If the dividend next year increases or decreases ? 2) If the last 12 month's dividend is high or low ? 3) If the dividend growth rate increases or decreases ? 4) If the Required Rate of Return (discount rate) is high or low ? ANSWER 5) Other than the riskiness of the investment, what could cause the required rate of return to change? 6) How sensitive is the stock value to changes iin the dividend growth rate? 7) What happens if the dividend growth rate is higher than the discount rate? 8) How do you value a stock that currently pays no dividends?
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