Question
The most recent recorded dividend payment of a firm was $3.45. The dividend payments are expected to increase by 8.32% in year one, 11.67% in
The most recent recorded dividend payment of a firm was $3.45. The dividend payments are expected to increase by 8.32% in year one, 11.67% in year two, and 9.965% in year three. After that, dividends are expected too grow at a constant rate of 5.55% forever. Stocks of similar risk yield 10%. What is the present value of this stock?
What are the dividend payments?
Calculate PV for the stock.
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Global Corporate Finance A Focused Approach
Authors: Suk Hi Kim, Kenneth A Kim
2nd Edition
9814618004, 9789814618007
