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If a co paid dividend of .10dollars 5 yrs ago
And it recently paid dividend on .15 dollars
And cost of equity is 11%
What would be the current share price and how to calculate it using dvm?
Note that div was paid 5 yrs ago and then recently with no dividends in between.
Can you please help with the answer sir?Where is this question from?
My role is to help you with questions about your understanding of our lectures and notes.
I can assist you in a question if I know where is it from and what exactly you don’t understand etcMy friend sat the exam last month, it’s from the exam. How to calculate the growth rate here is my question. As the dividend wasn’t paid each year. But only 5 yrs ago and then recently.
I would have to have access to the question to answer it properly
Or be able to see it and review itBut I’d imagine it’s using
PV = Dividend / (1 + Cost of Equity)^n
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