Zalik Berhad shares last year's dividends were RM4.00 per share. The dividends are expected to grow at 16% per year for the next three years and then at a more gradual rate of 6% a year indefinitely. Required rate of return is 20%. Find the value of the stock today. Would you buy Zalik's shares at the current market price at $130?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Zalik Berhad shares last year's dividends were RM4.00 per share. The dividends are expected to grow at 16% per year for the next three years and then at a more gradual rate of 6% a year indefinitely. Required rate of return is 20%.  Find the value of the stock today. Would you buy Zalik's shares at the current market price at $130?

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