PDA

View Full Version : Common Stock Value Variable growth


glh14glh
Oct 31, 2011, 02:15 PM
Lawerence Indurstries most recent dividend was 2.38 share and the firm's required return is 16%. Find the market value of Lawerences shares when dividends are expected to grow at 30% annually for 3 years, followed by a 5% constant groth rate in years 4 to infinity.

atollive
Dec 5, 2011, 07:25 PM
Present Value of dividends and stock price = $40.99