Question
question 9 A share is expected to pay a dividend of Shs 25/= in one years time. Thereafter, dividend growth is expected to be 4%
question 9
A share is expected to pay a dividend of Shs 25/= in one years time. Thereafter, dividend growth is expected to be 4% per annum for two years and 2% per annum subsequently. If the market capitalization rate is 17% per annum, what is the value of the share?
Select one:
A. Shs 112.60
B. Shs 152.90
C. Shs 180.3.30
D. Shs 166.70
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Healthcare Finance Modern Financial Analysis For Accelerating Biomedical Innovation
Authors: Andrew W. Lo, Shomesh E. Chaudhuri
1st Edition
0691183821, 978-0691183824
