You are given the following information: The discount rate used to value shares that are traded on the NASDAQ or NYSE is 12%.

You are given the following information:

The discount rate used to value shares that are traded on the NASDAQ or NYSE is 12%.

The growth rate of the cash flows that will be paid to shareholders is 8% for years 1-10 and 4% from years 11-100. What is the value of the shares of GSK today based only on this information? You should use the most recent data on the annual dividend paid by GSK as your starting point for cash flows to shareholders. In other words the first dividend paid to shareholders will be 8% higher than the last dividend paid. Assume dividends are paid annually.  

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