A company has just paid a 10 cent dividend per share. This dividend is expected to grow
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A company has just paid a 10 cent dividend per share. This dividend is expected to grow at 8% per year until year 3. After that it will grow at 7% per year (growth assumed indefinitely). Let's assume a discount rate of 12% to reflect the systematic risk involved. The dividend in year 3 would be ______________ and the value (price) of the share in year 3 using the adapted model is _______________
The current ex div value of the company's shares is approximately _____________
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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