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
Fauzan A...$1,390.00
Visitor$1,322.80
mainguye...$1,269.43
Visitor$1,125.00
Visitor$1,100.00
Visitor$1,008.63
Loftyy$953.18
xinerator$950.00
xinerator$930.00
Visitor$930.00
Visitor$800.00
Fronk$789.43
Visitor$787.09
Visitor$780.00
 

Question 9  DDM, NPV

For a price of $129, Joanne will sell you a share which is expected to pay a $30 dividend in one year, and a $10 dividend every year after that forever. So the stock's dividends will be $30 at t=1, $10 at t=2, $10 at t=3, and $10 forever onwards.

The required return of the stock is 10% pa.

Would you like to the share or politely ?



Copyright © 2014 Keith Woodward