Answer to Question #145774 in Financial Math for Hien NGUYEN

Question

9. The last dividend paid by Paris Securities, Ltd. just paid a dividend of $2.15. The company projects supernormal growth of 16% annually for the next two years. After that growth is expected to slow down to a normal 4% annual growth rate which will go on indefinitely. The dividends will grow accordingly. If the required annual rate of return is 11%, how much would you pay for a share of Paris Securities today?

Answer 1

Dear Hien NGUYEN, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order