Suppose a company will go out of business in two years. The company is expected to pay
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Question:
Suppose a company will go out of business in two years. The company is expected to pay a $8 dividend one year from now and a $10 dividend two years from now (immediately before it goes out of business). The required return is 6%.
What should be the price of the share?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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