This paper circulates around the core theme of BUS 310 – Polycorp has a dividend of $5.00 due in a yearâs time and is expected together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Polycorp has a dividend of $5.00 due in a yearâs time and is expected to pay a dividend $5.60 at the end of the second year. Its dividend is expected to grow at 7% pa for the following two year. Dividends are then expected to grow at 4% pa for another two years, after which they are expected to grow at 3%pa forever. Shareholders required return on equity is 11% pa. What is the current price (ex-dividend) of Polycorp shares? D0 is $4.