Polycorp has just paid a dividend of $5.00 (D0). Its dividends are expected to grow at 9% pa for the next three years. Dividends are then expected to grow at 4.5% pa for another two years. Then they are expected to grow at 3%pa forever after that (4.8). Shareholders required return on equity is 13.5% pa. What is the current price of Polycorp shares (accurate to the nearest cent)?
Paper#8778 | Written in 18-Jul-2015Price : $25