Temp Corp. just paid a $2.25 dividend. Because of a new invention, the dividend is expected...

Question

Question

Temp Corp. just paid a $2.25 dividend. Because of a new invention, the dividend is expected to rise at a 35% rate for two yea

business finance

Answer 1

Answer #1

Answer:

Share is worth = $30.94

Working:

35% 35% 15% 15% 12% nper PV $2.25 $3.04 $4.10 $4.72 $5.42 $32.00 1 2 3 4 5 $2.71 $3.27 $3.36 $3.45 $18.16 | $30.94

The above excel with 'show formula' is as follows:

А в 2 gi 5 g4 0.35 0.35 0.15 0.15 0.12 nper 2.25 =B8*(1+B2) 1 =B9*(1+B3) 2 =B10*(1+B4) 3 =B11*(1+B5) 4 PV 8 DO 9 01 10 D2 11

Answer 2

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