A telecommunication company recently paid $1 dollar dividend. It is estimated that this dividend will grow at a rate of 25% per year for the next three years. From year 4 dividend will grow at 4% per year indefinitely. 

Compute the current value of this company's share (assume 14% required rate of return).

Answer rating: 100% (QA)

To compute the current value of the companys share we can use the dividend discount model DDM formul... View the full answer