Marigold Inc. has just paid a dividend of $3.40. An analyst forecasts annual dividend growth of...
Marigold Inc. has just paid a dividend of $3.40. An analyst
forecasts annual dividend growth of 8 percent for the next five
years; then dividends will decrease by 1 percent per year in
perpetuity. The required return is 11 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.)
I got 38.15 and it's WRONG. Please show the timeline you draw and calculations and formulas you used. Thank you
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Marigold Inc. has just paid a dividend of $3.40. An analyst
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step by step instructions
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step by step instructions
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