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Over the past 5 years from 2015 to 2020, DL Insulation has paid annual dividends of...

Over the past 5 years from 2015 to 2020, DL Insulation has paid annual dividends of $0.46, $0.635, $0.71, $1.03 and $1.13 per share. What would you estimate the share price to have been at 30/06/2020? Would you have bought your company’s stock? (a required an actual return of 16%)

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Expert Solution

Answer :

Given the above information,

Share price will be = 1.13/0.16 ==> 7.0625


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