ABC is expected to pay a dividend of 3.50 per share next year. Calculate the value of a share if dividends are expected to grow at 4.0%, the riskless rate is 2.0%, the expected market risk premium is 5.0%, and the company's beta is 1.20?© BrainMass Inc. brainmass.com June 4, 2020, 12:43 am ad1c9bdddf
Share price according to dividend discount model
Dividend discount model: Share price = Next year's dividend / (expected ...
The share price is found in a few lines of reasoned calculations.