Assume that ABC Ltd. just paid a dividend of $4 per share. It is estimated that dividends will grow at a rate of 8% p.a.
Posted: Thu Apr 28, 2022 1:38 pm
Assume that ABC Ltd. just paid a dividend of $4 per share. It is
estimated that dividends will grow at a rate of 8% p.a. for the
next three years, after which the growth will stabilize to a rate
of 5% p.a. If investors require a 12% p.a. return on their
investment, what is the current price of ABC’s stock?
estimated that dividends will grow at a rate of 8% p.a. for the
next three years, after which the growth will stabilize to a rate
of 5% p.a. If investors require a 12% p.a. return on their
investment, what is the current price of ABC’s stock?