Suppose a firm has issued 100 shares and pays out dividends in the amount of $150 on first period earnings, $165 on second period earnings and $175 on third period earnings. The firm ceases to exist at the end of the third period. Let r=10%. What is the value of the firm's share in period1?

Answer rating: 100% (QA)

To calculate the value of the firms share in the first period w... View the full answer