Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zizizi Inc has never paid dividends. They plan to pay their first dividend of $0.15 per share in exactly a year. If investors expect the
Zizizi Inc has never paid dividends. They plan to pay their first dividend of $0.15 per share in exactly a year. If investors expect the dividend to perpetually grow by 10.9% per year, and require a 20% return on investment, what price are investors willing to pay for a Zizizi share? Enter your answer in dollars to 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started