Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a share alex brought share will pay its first divi

A share Alex brought share will pay its first dividend of $1.90 in one year....

70.2K

Verified Solution

Question

Accounting

image

A share Alex brought share will pay its first dividend of $1.90 in one year. The dividend will be paid every year at a constant growth rate of 5% p.a. The rate of return is 13% p.a. effective. Calculate the price of the share in 2 years using the dividend discount model (DDM)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students