Question
In: Finance
Hero" firm just paid $1 dividend. Analysts are predicting that the firm will pay $1 in...
Hero" firm just paid $1 dividend. Analysts are predicting that the firm will pay $1 in a year, $2 in two years and $3 in three years from today. After that, the growth rate will be 6% a year forever. Assuming that the market price of the firm is $50, what is the required rate of return?
Solutions
Expert Solution
we will make the differenc to zero by using the goal seek funtion.
after pressing the enter button we get the follwoing solution
so the correct answer is 11.12%
jeff jeffy answered 1 year agoRelated Solutions
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