1. Business
  2. Finance
  3. cbf company just paid the dividend of dollar17 per share...

Question: cbf company just paid the dividend of dollar17 per share...

Question details

CBF company just paid the dividend of $1.7 per share. In the next year, the dividend is expected to grow by 8%, which will gradually decrease each year in another five years before growing sustainably at 3%. The required rate of return is 10%, current share price of CBF is $20. Is this company fairly valued, overvalued or undervalued?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution