Question: How to do this question Supreme Ltd is about to be listed on the share market. The required return is 12%. Today's dividend is $0.80

 How to do this question Supreme Ltd is about to be

How to do this question

Supreme Ltd is about to be listed on the share market. The required return is 12%. Today's dividend is $0.80 and the forecast dividend in a year's time will be $1.00. The dividend is expected to grow by 15% for the next two years after that and then settle down to a constant growth of 5% pa thereafter. What is a fair price for a share

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!