The current share price is $49.97 two-year dividend 50% and 25% respectively. after that third year starting

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The current share price is $49.97 two-year dividend 50% and 25% respectively. after that third year starting dividends will grow at a constant rate of 3.5% forever return is 7.098%.

Calculate the value of shares. Based on this price would you purchase WES shares? Why or why not?

Related Book For answer-question

Intermediate Financial Management

ISBN: 978-1285850030

12th edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Posted Date: Mar 29, 2023 03:33 AM

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The current share price is $49.97 two-year dividend 50% and 25% respectively. after that third year starting

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Expert Answer:

To calculate the value of the shares we can use the dividend discount model DDM formula V D1rg where ... View the full answer

Intermediate Financial Management

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