Question: Suppose that you estimate that REIT Corporation, will skip its next two annual dividends, but then resume paying a dividend, with the first dividend paid
Suppose that you estimate that REIT Corporation, will skip its next two annual dividends, but then resume paying a dividend, with the first dividend paid to be equal to $2.00. (Thus, the initial timing of the first dividend payment is t=3) If all subsequent dividends will grow at a constant rate of 5% per year and the required rate of return on REIT is 10% per year, what should be its price? a 34.55 36.28 30.05 33.06
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