What would you expect the market price for a genoa ltd

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Question - Genoa Ltd shares have just paid a dividend of $5.50. Big City Financial Analysts, an independent finance bureau, have very recently released a report in which they suggest that the dividends for Genoa Ltd shares will grow by 10% per annum for the next two years, and then 5% per annum for the three following years, and then settle to grow by 1.5% per annum in perpetuity. Investors in Genoa Ltd shares expect a 13.5% annual return.

What would you expect the market price for a Genoa Ltd share to be? I.e. what is the present value of the Genoa Ltd share?

Reference no: EM131592973

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