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Assume that it is December 31, 2017 and that ABC Company pays dividends once per year on the last day of the year. Below, I have presented the annual dividend forecast for ABC. You also have the cost of equity and the terminal value perpetuity growth rate.

                                                2017            2018                    2019                     2020                2021

Dividend Per Share          1.75               2.00                       2.25                       2.50                       3.00

Cost of Equity    12%                                                      

TV Perp Growth Rate      3%                                                        

What is the value of the terminal value perpetuity in 12/31/2017 dollars on a per share basis?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92771197

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