Question
Supposed BFB Bank is expected to pay a dividend of RM3.50 per share at the end of the year and its stock dividends are expected
Supposed BFB Bank is expected to pay a dividend of RM3.50 per share at the end of the year and its stock dividends are expected to grow 8 percent a year indefinitely into the future. If the appropriate discount rate applied to the bank's expected dividend stream is 12 percent, calculate is the current value for BFB Bank's stock? Can you use the same evaluation in question (a)? Why?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
