In: Finance
Windsor Inc. has just paid a dividend of $4.10. An analyst
forecasts annual dividend growth of 9 percent for the next five
years; then dividends will decrease by 1 percent per year in
perpetuity. The required return is 12 percent (effective annual
return, EAR). What is the current value per share according to the
analyst? (Round present value factor calculations to 5
decimal places, e.g. 1.54667 and other intermediate calculations to
3 decimal places, e.g.15.612. Round final answer to 2 decimal
places, e.g.15.61.)
Current value per share | $Type your answer here |
Calculations-
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