Ambika traders paid a dividend of $4, $6, and $8 consecutively for three years to the shareholders. Its dividend is expected to increase at 8% per annum from the 4th year onwards. Given the required rate of return at 12% per annum, calculate the present fair value of the stock.  

Answer rating: 100% (QA)

To calculate the present fair value of the stock we can use the Gordon Growth Model Dividend Discoun... View the full answer