The shares of the new company are not expected to pay dividends for the next 3 years. From year 4 onwards, a dividend of
Posted: Thu May 19, 2022 11:12 am
The shares of the new company are not expected to pay dividends for
the next 3 years. From year 4 onwards, a dividend of $2.70 is expected, with a growth rate of 9% indefinitely. Determine the share price today, if the required return for activities of similar risk is 12%.
the next 3 years. From year 4 onwards, a dividend of $2.70 is expected, with a growth rate of 9% indefinitely. Determine the share price today, if the required return for activities of similar risk is 12%.