Lemma systems will pay an annual dividend of 050 one year


Lemma Systems will pay an annual dividend of $0.50 one year from now. Analysts expect this dividend to grow at 7% per year thereafter until the fifth year. After then, growth will level off at 3% per year. According to the dividend-discount model, what is the value of a share of Lemma stock if the firm's equity cost of capital is 8%?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Lemma systems will pay an annual dividend of 050 one year
Reference No:- TGS01244760

Expected delivery within 24 Hours