Today you are buying a share that is offering you the following dividends: 4 EUR within 1 year, 5 EUR after 2 years, 4 EUR after 3 years. Knowing that in 3 years from today this share will be priced on the market at 59 EUR and the cost of capital is 18%, how much should you pay for this share today?

Answer rating: 100% (QA)

SOLUTION To calculate the present value of the dividends and the final price of the share we can use ... View the full answer