Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,541.61
DanielDng$2,340.70
Visitor$830.00
Visitor$610.00
Visitor$240.00
Visitor$223.09
Visitor$170.00
Visitor$133.09
Visitor$130.00
Visitor$120.00
Visitor$120.00
Visitor$110.00
Visitor$90.00
Visitor$66.43
Visitor$63.09
Visitor$62.27
Visitor$60.00
Visitor$52.91
Visitor$50.00
Visitor$50.00
 

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