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Homework Answers
rate positively ..
| Ans a) | Using DDM price today = Expected dividend next year/(required rate - growth rate) | ||||||||
| 1.12/(8.3%-6.4%) | |||||||||
| 58.95 | |||||||||
| ans = | 58.95 | ||||||||
| Ans b) | Growth rate = | Required rate - Expected dividend next year/Price today | |||||||
| 8.3%-1.12/43.48 | |||||||||
| 5.72% | |||||||||
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