Currently shares of ABC Company is trading for $74 per share in the market. The company recently paid $4.5 dividend per share and expected to pay $4.725 dividend next year. The company follows a constant dividend growth policy. If the required rate of return is 10%, will you purchase the share of this company?

Answer rating: 100% (QA)

Answer According to the Dividend growth model Share price Dividend for nex... View the full answer