Question
Problem 8-17 Nonconstant Dividends [LO1] Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $6.50. Afterward,
Problem 8-17 Nonconstant Dividends [LO1]
| Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $6.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 16 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Current share price | $ |
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The New Microfinance Handbook A Financial Market System Perspective
Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson
1st Edition
0821389270, 978-0821389270
