NorBrig&Co, expect to pay a dividend of $1,75 per share in the next year. Investors require a 12% return. and dividends are expected to grow at 2,57% per year forever. Calculate current value of NorBrig &Co. stocks?
Added by Маруся Л.
Step 1
- The expected dividend in the next year (D1) is $1.75. - The required rate of return (r) is 12%, or 0.12 when converted to decimal form. - The constant growth rate of the dividends (g) is 2.57%, or 0.0257 when converted to decimal form. Show more…
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