Shipping company Deliveroo has exclusive ownership of the Fast&Furious Truck Company until the end of 2023. During
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Shipping company Deliveroo has exclusive ownership of the Fast&Furious Truck Company until the end of 2023. During this time, they are expected to grow their annual dividend by at least 8% every annual period.
After 2023 the Fast&Furious Truck company is sold to a foreign company, they are projecting that the long-term growth rate will stabilise to 3% p.a. compounded semi-annually forever. They paid a dividend of $0.21 on the last day of 2020. The required return on equity is assumed to be 6.5% p.a. compounded annually.
Calculate the expected share price of Deliveroo at the end of 2020.
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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