求助：被人问倒了，这道算current market price的题目怎么做啊？

jhsun3

之前还在别人面前自夸金融不错，外汇做的不错。今天被人的一道题给问倒了 。哪位大拿伸伸援手救兄弟一把。

A company has just paid an annual dividend of 15c per share and that dividend is expected to grow at a rate of 20% per annum for the next 3 years,and at a rate of 5% per annum forever after that. Assuming a required rate of return of 10%, caculate the current market price of the share.

gstfree

D1=0.15 X 1.2 =0.18
D2=0.15 x 1.2^2 = 0.216
D3=0.15 x 1.2^3 = 0.2592
Dividend @ year 4: 0.15 x (1+0.2)^3 x 1.05 = 0.27216

Apply constant dividend growth model: value at year 3:     0.27216/(0.1 - 0.05)+0.2592 = 5.7024

Discount back at rate 10% and you will get current price : $4.6264

Please kindly correct me if I am wrong or making non sense (Sorry, on company laptop, no Chinese input).

jhsun3

gstfree 发表于 2014-3-31 18:38
D1=0.15 X 1.2 =0.18
D2=0.15 x 1.2^2 = 0.216
D3=0.15 x 1.2^3 = 0.2592

really thanx... I will put points into your other posting.. many thanx.. :)