Landspehf. predicts that the market for the company's products is saturated and that the company's sales will
Fantastic news! We've Found the answer you've been seeking!
Question:
Landspá ehf. predicts that the market for the company's products is saturated and that the company's sales will decrease. Therefore, it is expected that the dividend will decrease by 2% per year for the next four years and after that it will decrease by 1% per year for the foreseeable future. The company's last dividend payment was $2.00/share, (ie D0 = $2.00/share) and the investor's return to the company is 15%.
What is the market price per share now, (ie P0), since the market is in good equilibrium?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: