After year 5 dividends are expected to grow indefinitely at


Kafue Fisheries paid a dividend of K0.58 per share this year. Dividends at the end of each of the next five years are expected to be as follows:

Year 1 K0.70

Year 2 K0.83

Year 3 K0.96

Year 4 K1.09

Year 5 K1.22

After year 5, dividends are expected to grow indefinitely at 10 percent a year. If your required rate of return for Kafue Fisheries’ common stock is 12 percent, what is the most that you would pay per share for Kafue Fisheries today?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: After year 5 dividends are expected to grow indefinitely at
Reference No:- TGS02846446

Expected delivery within 24 Hours