Suppose a firm's dividends are expected to grow at a rate of 15% (g1) for 3 years (t) then stabilize at 5% (g2) forever. if the firm just paid a $2.00 (d0) dividend and the discount rate is 10% (r), what is the value of a share of the firm's stock in year 3 (p3 )? (do not round your intermediate calculation.)
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Ответ:
The answer is: $63.88
Explanation:
First we calculate the dividends paid at year 3 will be:
- dividends year 3 = $2 x (1 + g1)³ = $2 x 1.15³ = $2 x 1.52 = $3.04
Then we calculate the dividends paid at year 4 will be:
- dividends year 4 = $3.04 x (1 + g2) = $3.04 x 1.05 = $3.19
Finally, to calculate the value of the stock at year 3 we can use the perpetuity formula:
Price at year 3 = D4 / (r -g2)
D4 = $3.19r = 10%g2 = 5%P3 = $3.19 / (10% - 5%) = $3.19 / 5% = $63.88
Ответ:
False
Explanation: