Question: Could you please help me on my homework: The question is below: The dividends of ordinary Shares of LMN corporation have been experiencing an annual
Could you please help me on my homework:
The question is below:
The dividends of ordinary Shares of LMN corporation have been experiencing an annual growth rate of 10% . The present dividend per share is P 1.20 . The investor is requiring a 15% rate of return .
Required: calculate the current value of LMN 200 shares under each of the following independent conditions:
a. Dividends to continue growing at a constant rate of 10% . ?
b. Dividend growth rate is anticipated to decrease by 1.5% and to remain constant at that level ?
c. Divident growth rate is expected to increase to 12.5 % and to remain constant at that level?
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