A company pays a dividend of $0.005 in 2020. Assume this company will pay the same 2020 annual dividend amount in 2021, 2022, 2023 and 2024. The annual dividend in 2025 is predicted to be 50% higher than 2024's annual dividend and is then forecast to increase at an annual rate of 5%. If the company's required return is 10%.

What is a fair value for one share in 2021, just after the 2021 dividend is paid?

Answer rating: 100% (QA)

To determine the fair value of one share in 2021 just after the 2021 dividend is paid we need to cal... View the full answer