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What is the current value of share

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Reference no: EM133068167

Assume MIE is a listed company and pays dividends once each year, and it just distributed this year's $1.30 dividend per share and expected to grow by 9% for the next year. After the next year, you estimate that MIE will increase its dividends by 7 % per year forever.

Required:

a) What is the current value of this share if your discount rate is 10%?

b) What is the current value of this share if MIE's dividend will grow by 7% forever from this year?

c) What is the current value of this share if MIE's $1.30 of dividend is fixed forever?

Reference no: EM133068167

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