What is the expected dividend to be paid in the first 3 years if yesterday's dividend was $6.00 (D0), dividends are expected to grow at 20% in year 1, 10% in year 2 and after that its growth is at a constant growth rate 6%? What will be the current market price? Assume the firm has a 12% expected return?
ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.
1.
Dividend for year 1, 2 & 3= 7.20; 7.92; & 8.40
2. the current market price = 124.29
Get Answers For Free
Most questions answered within 1 hours.