Question
QUESTION FOUR Share valuation (15 marks) Anderson Concrete Pty Limited (ACP) has introduced another product. As a result, dividends are expected to grow at 18%
QUESTION FOUR Share valuation (15 marks)
Anderson Concrete Pty Limited (ACP) has introduced another product. As a result, dividends are expected to grow at 18% for the next 3 years. After that the growth rate will fall to 9% indefinitely. ACP has no long-term debt and its expected rate of return is 11.35%. The company just paid a dividend of $0.55 per share.
Required:
- Calculate the estimated value of ACP stock?
- What is the value of the stock at end of year 4?
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Real Estate Finance Theory And Practice
Authors: Terrence M. Clauretie, G. Stacy Sirmans
5th Edition
0324305508, 9780324305500
