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10 Jun 2020
You are considering investing in Rozok. Suppose Rozok currently paid Rs.3.25 dividend and enjoying super growth and expected to pay 35% more in dividends each year for 3 years. After these three years, the dividend growth rate is expected to be 4% per year forever. If the required return for Rozok common stock is 14.5%, what is a share worth today? And if Rozok stock is currently selling at Rs.80, should you buy this stock at this price or not?
You are considering investing in Rozok. Suppose Rozok currently paid Rs.3.25 dividend and enjoying super growth and expected to pay 35% more in dividends each year for 3 years. After these three years, the dividend growth rate is expected to be 4% per year forever. If the required return for Rozok common stock is 14.5%, what is a share worth today? And if Rozok stock is currently selling at Rs.80, should you buy this stock at this price or not?
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2 Jun 2021