Assuming that f corp will live up to these projection


F Corporation has a policy to grow the company's cash flows and consequently the dividend by 4 percent each year. In addition F Corp is in an industry where risk is relatively low. Because of this low risk, a 9 percent return is reasonable as a required return. Assuming that F Corp will live up to these projection forever and expects to pay a $1.54 dividend per share at the end of the coming year, what is a ballpark estimate of the value of this common stock? 

Solution Preview :

Prepared by a verified Expert
Finance Basics: Assuming that f corp will live up to these projection
Reference No:- TGS01516890

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)