It is forecasted that Inflection Berhad will continue to increase its annual dividend by 15% a year for the next four ye

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

It is forecasted that Inflection Berhad will continue to increase its annual dividend by 15% a year for the next four ye

Post by answerhappygod »

It Is Forecasted That Inflection Berhad Will Continue To Increase Its Annual Dividend By 15 A Year For The Next Four Ye 1
It Is Forecasted That Inflection Berhad Will Continue To Increase Its Annual Dividend By 15 A Year For The Next Four Ye 1 (36.61 KiB) Viewed 18 times
It is forecasted that Inflection Berhad will continue to increase its annual dividend by 15% a year for the next four years. After that, it needs to decrease the growth rate to 3.5% per year. The company has just paid its annual dividend in the amount of RM0.20 per share. Calculate the current value of one share of this stock if the required rate of return is 15.5%. If the market price is RM1.55, should you purchase the stock? Justify your answer.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply