Question: Robert Corp is expected to pay a $1.00 dividend per share. It also has a constant long term growth rate of 6% per year. The
Robert Corp is expected to pay a $1.00 dividend per share. It also has a constant long term growth rate of 6% per year. The company is looking to raise money for growth and is promoting a rate of return for investors of 10%. Based on this information , what is a fair market value for shares in rovers corp based on dividend discount model?
A. 2.50
B. 6.25
C. 10.00
D. 25.00
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