Ring Panda, a fashion jewellery distributor, issues dividends semi-annually. The most recent dividend was $1.5, dividends are expected to grow at 8% p.a, compounded semi-annually, and the cost of equity is 15% p.a, compounded semi-annually. In addition to its existing dividend scheme, Ring Panda intends to also issue a $3.4 special dividend one quarter from now. What is the share price of Ring Panda?

Answer rating: 100% (QA)

To calculate the share price of Ring Panda we can use the dividend discount model which calculates t... View the full answer