Suppose that a company will pay quarterly dividends of e1 per share at the end of each of the next 12 quarters. Afterwards, the dividend grows at a quarterly rate of 0.5%, forever. Alternatively, an investor could deposit the money in a bank account at 10% compounded quarterly. 

What is the price of each share?

Answer rating: 100% (QA)

To calculate the price of each share we need to find the present value of the future dividends using ... View the full answer