What is the current price-wild horses plc

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Reference no: EM132955441

Wild Horses plc. has just announced that it will not pay a dividend because of atrocious trading conditions over the previous year. However, analysts expect the company to pay a dividend of £0.5 next year. (Do not round your intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Requirement 1: If dividends are expected to grow at a constant rate of 10 per cent per year indefinitely, and investors require a 14.5 per cent return on the company, what is the current price? Price£

Requirement 2: What will the price be in five years? Price£

Requirement 3: What will the price be in ten years? Price£

Reference no: EM132955441

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