Question: Calculate the required return and the present value for both shares would you place on each share Furthermore, assume that Sharp Ltd's dividend has grown
- Calculate the required return and the present value for both shares would you place on each share Furthermore, assume that Sharp Ltd's dividend has grown from $0.50 to $0.58 in the last 5-years and Blunt Ltd's dividend has increased from $1.10 to $1.34 over the last 5-years. The last observed 10-year government bond yield was 2%. What concerns does the research raise in regards to dividend valuation models? What have you chosen to be the market risk premium and why?
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