Calculate the current value of lmn 200 ordinary

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Problem: The dividends of ordinary shares of LMN Corporation have been experiencing an annual growth rate of 10%. The present dividend per share is $ 1.20. The investor is requiring a 15% rate of return.

Required: Calculate the current value of LMN's 200 ordinary shares under each of the following independent conditions.

a) Dividends to continue growing at a constant rate of 10%. $

b) Dividend growth rate is anticipated to decrease by 1.5% and to remain constant at that level. $

c) Dividend growth rate is expected to increase to 12.5% and to remain constant at that level. $

Reference no: EM132431216

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