A QUESTION FROM MOCK interest, growth, second, should, price

dole

10% rate of interest on newly issued bonds,

7% growth rate in earning and dividends,

last dividend paid was 0.93,

share price 16 ,


use DDM , what is R ?


I use p=d/(r-g) is not right ,

seems I should use P= d*(1-g)/(r-g) P=D*(2-g)/(r-g)  ,

not sure when should i use the second fomular and when should i use the first one ?

THANKS

[此贴子已经被作者于2009-5-15 10:20:01编辑过]