Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,521.61
Visitor$3,006.43
skanibaglu$2,328.63
DanielDng$2,300.70
boodge$1,798.63
oosterhoff$1,647.00
emmarose...$1,567.43
Fauzan A...$1,390.00
Visitor$1,322.80
mainguye...$1,269.43
Visitor$1,008.63
xinerator$950.00
xinerator$930.00
Visitor$930.00
Fronk$789.43
Visitor$780.00
Visitor$760.00
Visitor$610.00
Visitor$590.00
LuluLutt...$569.43
 

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