A share is expected to pay a dividend of Shs 30/= in one years time. Thereafter, dividend
Fantastic news! We've Found the answer you've been seeking!
Question:
A share is expected to pay a dividend of Shs 30/= in one years’ time. Thereafter, dividend growth is expected to be 5% per annum for two years and 2% per annum subsequently. If the market capitalization rate is 16% per annum, what is the value of the share?
Select one:
A. Shs 236.30
B. Shs 200.60
C. Shs 151.40
D. Shs 214.30
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Posted Date: