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What about Kraft hertz theyre currently paying an annual dividend of 4.6 and we expect that they grow at a constant rate of 2.8. Assuming
What about Kraft hertz theyre currently paying an annual dividend of 4.6 and we expect that they grow at a constant rate of 2.8. Assuming the market requires a 9% return from Kraft hertz what is their stock worth. (answer with 2 decimal) use constant growth model.
Price of share as per Constant growth model = $74.19
PART B How much is their stock worth if they were to stop growing their dividends at 2.8% after five years instead of growing at 1.7% after that indefinitely (answer with two decimals)
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