Question
The following table shows the expected dividend payments and required rate of return of Globex Corp. Clearly explain the assumptions, if any, you are using
The following table shows the expected dividend payments and required rate of return of Globex Corp. Clearly explain the assumptions, if any, you are using to solve below question(s).
| Year | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | ke |
| Dividend | $ 0.40 | $ 0.44 | $ 0.48 | $ 0.53 | $ 0.59 | $ 0.61 | $0.63 | 12% |
1,Calculate value of Globex Corp share in 2021.
2.The market price of Globex Corp share is $8.50. Based on your answer in (i), is Globex Corp share overvalued, undervalued or fairly priced? Explain clearly.
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Finance And Sustainability
Authors: William Sun, Celine Louche, Roland Perez
1st Edition
1780520921, 978-1780520926
