Tata Consumer Products just paid a dividend of 1.49 and anticipates a short term growth rate of 15% for year 1 and for year 2 (dividends 1 and 2). Assuming that after year 2, Omni's contract with the City of Detroit will give it a constant growth rate of 4%, what is the fair-value of a share if the required return is 11%?
Tata Consumer Products just paid a dividend of 1.49 and anticipates a short term growth rate of 15% for year 1 and for year 2 (dividends 1 and 2). Assuming that after year 2, Omni's contract with the City of Detroit will give it a constant growth rate of 4%, what is the fair-value of a share if the required return is 11%?
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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Tata Consumer Products just paid a dividend of 1.49 and anticipates a short term growth rate of 15% for year 1 and for year 2 (dividends 1 and 2).
Assuming that after year 2, Omni's contract with the City of Detroit will give it a constant growth rate of 4%, what is the fair-value of a share if the required return is 11%?
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