Stock Valuation-Supernormal Growth

flupsie

Howard Davids
a) A company originally estimates that it will have supernormal growth of 15% for 2 years and thereafter it is expected to decline to 8%. It then revises its forecast and forecasts it will continue to have 15% growth for another 5 years. what effect will this have on its Price, Dividend Yield and Capital gain Yield?

b) Of what interest is the changing relationship between Dividend Yield & Capital Gains over time?

Your assistance would be most appreciated
 
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