Question
PROBLEM # 1 ABC Company currently pays a dividend of $2.85 per share, D 0 =2.85 It is estimated that the companys dividend will grow
PROBLEM # 1
ABC Company currently pays a dividend of $2.85 per share, D0=2.85 It is estimated that the companys dividend will grow at a rate of 25 percent per year for the next 3 years, then the dividend will grow at a constant rate of 9 percent per year thereafter. The market rate of return is 10 percent. What would you estimate is the stocks current price?
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PROBLEM # 2
FIFA Company currently pays a dividend of $1.80 per share, D0=1.80 It is estimated that the companys dividend will grow at a rate of 30 percent per year for the next 2 years, then the dividend will grow at a constant rate of 7 percent per year thereafter. The market rate of return is 12 percent. What would you estimate is the stocks current price?
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Handbook Of Financial Planning And Control
Authors: Robert P. Greenwood
3rd Edition
0566083728, 978-0566083723
