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What is a share in Axe Capital worth

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Reference no: EM132533618

Question - Axe Capital just paid its shareholders are dividend of $10.00 per share, which is expected to remain unchanged for the next 5 years. Thereafter the dividend is expected to grow at 10% p.a. What is a share in Axe Capital worth, if the company's shareholders expect to earn 20% p.a.?

a. $77.85

b. $74.11

c. $78.10

d. $70.09

e. None of the other answers is correct

Reference no: EM132533618

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