Carvings LTd. is expected to pay dividends of $2.10 per share in Year 1 and $2.35 per share in Year 2 and $2.60 in Year 3. Then, the dividend is expected to increase by 3% annually in perpetuity. What is the current value of the company's shares at a discount rate of 15%p.a?

Answer rating: 100% (QA)

To find the current value of Carvings Ltds shares we can use the dividend discount model DDM The for... View the full answer