Question
You bought 100 stocks from company XYZ. The company will pay dividends per 20 years starting at year 1. After that the company will disappear.
You bought 100 stocks from company XYZ. The company will pay dividends per 20 years starting at year 1. After that the company will disappear. The discount rate for company XYZ is 12%. What is the price of the company today? What would be the price today if the company pays dividends for 20 years but starting at year 3?
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
