Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,631.61
an4_bolt$4,086.43
youngthu...$2,449.43
Visitor$800.00
Visitor$690.00
Visitor$620.00
Visitor$520.00
Visitor$500.00
Visitor$490.00
Visitor$490.00
Visitor$470.00
Visitor$460.00
Visitor$420.00
Visitor$420.00
Visitor$408.00
Visitor$370.00
Visitor$370.00
Visitor$360.00
Visitor$340.00
Visitor$320.00
 

Question 161  DDM

A share just paid its semi-annual dividend of $10. The dividend is expected to grow at 2% every 6 months forever. This 2% growth rate is an effective 6 month rate. Therefore the next dividend will be $10.20 in six months. The required return of the stock 10% pa, given as an effective annual rate.

What is the price of the share now?




Copyright © 2014 Keith Woodward