The growth in dividends of Tan Berhad is expected to be 15% per year for the next threeyears, followed by a growth rate of 8% per year for two years. After this five-year period, the growth in dividends is expected to be 3% per year, indefinitely. The required rate ofreturn on Tan Berhad is 13%. Last year's dividends per share were RM1.85. What shouldthe stock sell for today?

Answer rating: 100% (QA)

To calculate the stock price of Tan Berhad today we can use the dividend discount model DDM which ta... View the full answer