What is the share price of company

Reference no: EM132179916

Problem - Company A will pay no dividends for the first five years and then 6 years from now plans to pay a dividend of $0.50. That dividend will grow at a 3% rate forever and investors required rate of return is 10% the first 5 years and 5% after. According to the Dividend Discount Model, what is the share price of Company A?

Reference no: EM132179916

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