Log in

View Full Version : Stock valuation


azietaurus
May 3, 2012, 01:58 AM
Compute the value of a share of common stock of a company whose most recent dividend was RM2.50 and is expected to grow at 3 percent per year for the next 5 years, after which the dividend growth rate will increase to 6 percent per year indefinitely. Assume 10 percent required rate of return.