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Old 06-27-2009, 12:41 AM
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Join Date: Jun 2009
Location: PA United States
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Default Need help with Dividend Discount Model Calculation

Hey guys, first time poster here.

I have a stock evaluation problem i cannot solve for the life of me. Can someone help me with it?

A company just paid a dividend of $1 with dividends expected to grow by 20% for the next 3 years and 5% thereafter. If your RRR is 12%, you're willing to pay $___ for the stock.


The solution given is: $12.60

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Old 06-29-2009, 12:25 PM
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Join Date: Jun 2006
Posts: 806
Default Re: Need help with Dividend Discount Model Calculation

Ask your tutor, and stop trying to cheat on your homework.

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