ABC Inc. is expected to begin paying dividends in 5 years. The initial dividend is expected to be 0.75 per share, and dividends are expected to grow at 5.0%. How do I calculate the value of a share (today) if the required return on the company is 8.0%?© BrainMass Inc. brainmass.com June 4, 2020, 12:43 am ad1c9bdddf
Value of share is the present value of all dividends. Here the dividends start in year 5 and grow at a constant rate. ...
The solution explains how to calculate the value of a share today.