You expect GDL to pay a dividend of $2 in one year, $3 in two years...

You expect GDL to pay a dividend of $2 in one year, $3 in two years and $5 in 3 years. After that, you think dividends will grow at a constant rate of 6%. You require a return of 9% to invest in GDL. How much would you pay for a share of the company today? Answer to 2 decimal places, for example 39.12.

Expert Solution

Value of share today is $ 144.64

Calculations-

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jeff jeffy answered 2 years ago

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