Doubts

Review Quiz 3- 6

Review Quiz 3- 6

by Salvador Valverde R. Azevedo Almeida -
Number of replies: 3

Shouldn't we here multiply 5 by 1.08


In reply to Salvador Valverde R. Azevedo Almeida

Re: Review Quiz 3- 6

by Julio Crego -
No, because the dividend is next year. The exercise already provides next year's dividend. You need to compute the growth when the exercise provides the just-paid dividend.