Our company announced that it will pay 2 TL of dividend per share today, and announced its
Fantastic news! We've Found the answer you've been seeking!
Question:
Our company announced that it will pay 2 TL of dividend per share today, and announced its dividends as 3 TL per share next year (1st year), 4 TL in the 2nd year and 5 TL in the 3rd year. The company announced that after paying 5 TL of dividends, it will switch to a regular growth model in the dividends and the dividend growth rate will be fixed 10 percent. If the rate of return expected by the investors is 16 percent, calculate the current market value of the stock (P0) and the market value at year 6 (P6).
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: