Mark Watson is interested in buying shares in CBA Ltd. which is growing at a constant rate

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Mark Watson is interested in buying shares in CBA Ltd. which is growing at a constant rate of 5 per cent. Last year, the company paid a dividend of $4.25. The required rate of return is 16 per cent.

a) What is the current price for this share?

b) What would be the price of the share in year 6?

Posted Date: May 18, 2024 03:07 PM

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Mark Watson is interested in buying shares in CBA Ltd. which is growing at a constant rate

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