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katen-ka-za [31]
1 year ago
14

what is the estimate of walmart's long term growth assuming the constant growth period started in 2014 when the dividend per sha

re was $1.89? answer in % terms w/o the % sign.
Business
1 answer:
Ksivusya [100]1 year ago
6 0

The estimation  of Walmart's long term growth assuming the constant growth period started in 2014 when the dividend per share was $1.89 is $42.60 is the answer in % terms w/o the % sign.

The solution to the above mentioned equation is given below.

$42.60 is the answer in % terms w/o the % sign.

Given about Walmart's stock,

required return r = 7%

Growth rate g = 1.93%

Last dividend D0 = $2.12

So expected dividend in 2021 is D1 = D0*(1+g) = 2.12*1.93 = $2.16

So, Current stock price can be calculated using constant growth model,

Current stock price P0 = D1/(r-g) = 2.16/(0.07-0.0193) = $42.60

To learn more about Walmart's, visit here:

brainly.com/question/28299312

#SPJ4

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