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Author Question: Worldwide Inc., a large conglomerate, has decided to acquire another firm. Analysts are forecasting ... (Read 69 times)

lak

  • Hero Member
  • *****
  • Posts: 546
on: Apr 25, 2021

Question 1

With the constant growth dividend discount model we must assume g < k. If g > k, then the stock price is
◦ negative.
◦ $0.
◦ infinity.
◦ par value.

Question 2

Worldwide Inc., a large conglomerate, has decided to acquire another firm. Analysts are forecasting a period (2 years) of extraordinary growth (20%), followed by another 2 years of unusual growth (10 %), and finally a normal (sustainable) growth rate of 6% annually. If the last dividend was D(0) = $1.00 per share and the required rate is 8%, what should the market price be today?
◦ $93.70
◦ $72.76
◦ $99.66
◦ $98.57
◦ $68.87
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by lak on Apr 25, 2021

aidanmbrowne

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lak

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

debra928

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Reply 3 on: Yesterday
Gracias!

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