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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Essentials Of Federal Taxation 2018
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
9th Edition
9781260007640
