Hutchison Co. has decided to pay its annual cash dividend of $2.00 in year 3 and year 4. Thereafter, its dividend payme
Posted: Wed Mar 16, 2022 9:11 am
Hutchison Co. has decided to pay its annual cash dividend of
$2.00 in year 3 and year 4. Thereafter, its dividend payments
will grow at an annual growth rate of six percent, forever.
The required rate of return on Hutchison’s stock is 16%.
According to the discounted-dividend model, what should
Hutchison’s current share price be?
$2.00 in year 3 and year 4. Thereafter, its dividend payments
will grow at an annual growth rate of six percent, forever.
The required rate of return on Hutchison’s stock is 16%.
According to the discounted-dividend model, what should
Hutchison’s current share price be?