Lawrence Industries Market value
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Lawrence Industries' most recent annual dividend was $1.80 per share (D0 = $1.80), and the firm's required return is 11%. Find the market value of Lawrence's shares when:
a. Dividends are expected to grow at 8% annually for 3 years, followed by a 5%
constant annual growth rate in years 4 to infinity.
b. Dividends are expected to grow at 8% annually for 3 years, followed by a 0%
constant annual growth rate in years 4 to infinity.
c. Dividends are expected to grow at 8% annually for 3 years, followed by a 10%
constant annual growth rate in years 4 to infinity.
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Solution Summary
In the solution, Lawrence Industries Market value is determined. The dividends and expected growth annually is calculated and given in an excel sheet.
Solution Preview
a. Dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity.
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Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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