Chittenden Enterprises has 600 million shares outstanding. It expects earnings at the end of the year to be $ 970 million. The
1 answer:
You might be interested in
Answer:
The present value of dividend to be paid at the end of year 1, year 2, and year 3 are $2.60, $2.95, and $2.84 respectively.
Explanation:
The end of the year dividend is $3 per share.
The dividend growth rate is 20%.
The discount rate is 15%.
PV of dividend to be paid at the end of year 1
=
=
=
=$2.60
PV of dividend to be paid at the end of year 2
=
=
=
=$2.72
PV of dividend to be paid at the end of year 3
=
=
=
=$2.84