As a financial analyst working for Goldman Sachs your job is to
evaluate the equity value of the Lynx Inc as of today. Your
research identified the following information about that firm: it
just paid (in 2021) annual dividend of $4.67 per share and the
required rate of return on capital is 17%.
For parts a, b and c assume that dividends grow at a
constant 5% rate a year forever.
For part d assume that following the dividend of $4.90
to be paid in 2022, the dividends will be $5.90 in 2023 and $6.25
in 2024. After that, dividends are projected to increase at a
constant rate of 3% per year forever.
As a financial analyst working for Goldman Sachs your job is to evaluate the equity value of the Lynx Inc as of today. Y
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