Karlyle Inc. has just paid a dividend of $4. An analyst forecasts annual dividend growth of 9

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Karlyle Inc. has just paid a dividend of $4. An analyst forecasts annual dividend growth of 9 percent for the next five years; then dividends will decrease by 1 percent per year in perpetuity. The required return is 8 percent (effective annual return, EAR). What is the current value per share according to the analyst?


Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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