Homework Answers
D1 = 1.75, g = 2% , ke =14.5%
constant dividend growth model
P0 = D1/(ke -g)
P0 = 1.75/(0.145-0.02) = 14
P6 = P0*(1+g)^n = 14*(1+0.02)^6 = 14 X 1.1261624 = 15.77
Answer : 15.77 (Thumbs up please)
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