MD Tech is currently not paying any dividends. Analysts expect that MD Tech will pay dividends for the first time in five years from today. They believe that the first dividend (D5) will be $2.0 and that the dividends will grow at 3% for the foreseeable future (i.e., forever). What is the price of one MD Tech share today assuming Md Tech's cost of equity is 11%?

Answer rating: 100% (QA)

Answer To solve this problem we need to use the Gordon Growth Model which is a valuation meth... View the full answer