Shares in PQR are currently trading for $12.25. The company is not expected to pay a dividend
Fantastic news! We've Found the answer you've been seeking!
Question:
Shares in PQR are currently trading for $12.25. The company is not expected to pay a dividend for the next four years. At the end of year 5, it is expected to pay a dividend of $1.00 per share, which will grow at 2% p.a. in perpetuity. What is the shareholder's required rate of return?
Group of answer choices
8% p.a.
7.5% p.a.
7% p.a.
6.5% p.a.
None of the other answers is correct
Posted Date: