TD Bank just released their annual financial statement. The analysts are expecting that TD's earnings and dividends will continue to grow at 16% for the next period. After that, growth will level at 5% for the indefinite future. Last year's dividend was $2 per share and analysts figure that the required return on this stock should be 16%. What is the value of TD's share assuming that growth at the rate of 16% will continue for 7 years?

Answer rating: 100% (QA)

To calculate the value of TD Banks share assuming a 16 growth rate for 7 years and a requi... View the full answer