Question
The company RealWorms is expecting to pay a dividend of $5 per share in the coming year, and is also expecting dividends to grow at
The company RealWorms is expecting to pay a dividend of $5 per share in the coming year, and is also expecting dividends to grow at 5% each year. The rate at which the stockholders discount the cash flows is 10%. 2.5 million shares are outstanding.
A. Please calculate the expected value of the companys stock holdings.
B. Say the discount rate increased to 12%. Please calculate the expected value of the companys stock holdings.
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
