Multiple Choice
A share you are interested in paid a dividend of €1 last week.The anticipated growth rate in dividends and earnings is 20% for the next year and 10% the year after that before settling down to a constant 5% growth rate.The discount rate is 12%.Calculate the expected price of the share.
A) €17.20
B) €17.90
C) €18.20
D) €19.40
E) €19.75
Correct Answer:
Verified
Correct Answer:
Verified
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