Company ABC just paid a cash dividend of $0.50 per share. Investors require a 15% return....

Company ABC just paid a cash dividend of $0.50 per share. Investors require a 15% return. If the dividend is expected to grow at a steady 6% per year, what is the current value of a share? What will the share be worth in four years?

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jeff jeffy answered 2 years ago

Shengyuan Company has just paid a cash dividend of 20 cents per share. Investors require a...

Shengyuan Company has just paid a cash dividend of 20 cents per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady rate of 4% per year, what is the current value of the share? What will the share be worth in five years? Show working out. P0 = D1/(r – g) = D0 (1 + g)/(r – g)

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(a) ABC Company has just paid a dividend of $1.00 per share. Dividends are paid annually....

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Shengyuan Company has just paid a cash dividend of 20 cents per share.

a) Shengyuan Company has just paid a cash dividend of 20 cents per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady rate of 4% per year, what is the current value of the share? What will the share be worth in five years? Show working out. ...

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