Year | Dividend | PV factor @9.5%, 1/(1+r)^time | Dividend * PV factor | ||
1 | 0.52 | 0.9132 | 0.47 | ||
2 | 0.67 | 0.8340 | 0.56 | ||
3 | 0.72 | 0.7617 | 0.55 | ||
4 | 0.81 | 0.6956 | 0.56 | ||
5 | 0.90 | 0.6352 | 0.57 | ||
5 | 21.00 | 0.6352 | 13.34 | ||
Share price today | 16.06 | ||||
Current Dividend | 0.90 | ||||
Rate of return | 9.50% | ||||
Growth Rate | 5.00% | ||||
Share Price at the horizon i.e. T5 | =Current Dividend*(1+Growth rate)/(Rate of return-Growth Rate) | ||||
Share Price at the horizon i.e. T5 | =0.9*(1+0.05)/(0.095-0.05) | ||||
Share Price at the horizon i.e. T5 | 21.00 |
Get Answers For Free
Most questions answered within 1 hours.