Assume Company X paid a dividend of $1.80 per share this year. The company expects dividends to
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Assume Company X paid a dividend of $1.80 per share this year. The company expects dividends to grow in perpetuity at 5 percent per year, and the company's cost of equity capital is 7%. The $1.80 divided is the dividend for this year and needs to be adjusted by the growth rate to find D1, the estimated dividend for next year.
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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