. Hirshfeld Corporation's stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1? Answer: 2.44
I NEED TO SEE HOW TO SOLVE USING EXCEL AND I NEED TO SEE WHAT FORMULAS TO USE AND HOW TO INPUT THEM
As per DDM |
Price = Dividend in 1 year/(cost of equity - growth rate) |
57.5 = Dividend in 1 year/ (0.1025 - 0.06) |
Dividend in 1 year = 2.44 |
. Hirshfeld Corporation's stock has a required rate of return of 10.25%, and it sells for...
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