Draper Company's ordinary shares paid a dividend last year of $3.70.You believe that the long-term growth in the dividends of the firm will be 8% per year.If your required return for Draper is 14%, how much are you willing to pay for the shares?

Question

Quizplus · Accepted Answer

The Answer of Draper Company's ordinary shares paid a dividend last year of $3.70.You believe that the long-term growth in the dividends of the firm will be 8% per year.If your required return for Draper is 14%, how much are you willing to pay for the shares?

Draper Company's Ordinary Shares Paid a Dividend Last Year of $3.70.You