Vitra Ltd recently paid a dividend of $0.50. The company's dividend is expected to grow at 10% p.a. for the next 4 years and thereafter, revert to a 4% p.a. growth rate forever. Investors in Vitra require a return of 12% p.a. compounded annually on their investment in the company.

How much should an investor expect to pay for a share in Vitra Ltd today?

Answer rating: 100% (QA)

P 0 275 3025 16675 9155625 65 P 0 932592 Therefore the investor should expect to pay approximately 9... View the full answer