Problems for class discussion: week 2 1. ABC Co. has paid a dividend of $5 per share on September 4, 2013. The company pays its dividends each year on September 4 and the amount is expected grow at a rate of 10% per year for the next three years (i.e. the next three payments). Thereafter, the dividends will grow at a constant rate of 2% each year. The relevant discount rate for these cash flows is 12%. (i) Find the price of a share of ABC on the following dates: September 5, 2013 December 5, 2013…
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