The company expects to maintain a constant 83 growth in


Non-constant Dividends. Hawke's Bay Ltd just paid a dividend of $0.50 and is expected to pay the following dividends over the next three years: $0.75, $1.10 and $1.40. Afterwards, the company expects to maintain a constant 8.3% growth in dividends forever. If the required return on Hawke's Bay's ordinary shares is 9%, what is the current share price?

Solution Preview :

Prepared by a verified Expert
Cost Accounting: The company expects to maintain a constant 83 growth in
Reference No:- TGS0818327

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)