Question: Polycorp plans to pay a dividend of $6 in one year time dividend are then expected to increase by $1 a year for 5 year

Polycorp plans to pay a dividend of $6 in one year time dividend are then expected to increase by $1 a year for 5 year after that they are expected to grow at 2%pa forever shareholders required return on equity is 11%pa what is the estimated value of polycorp shares

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To estimate the value of Polycorp shares we need to calculate the present value of all expected future dividends We can break this down into different ... View full answer

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