The stock has an expected price of 20.00 with expected dividend growth of 5%.
According to the CGD's recommendations, the Expected Price is the sum chosen as the Bid Amount.
A rate or price that products and services can fairly be expected to achieve, given a specific set of economic circumstances, is known as an expected price level, also known as an anticipated price level.
Another reference price that develops from experience or other pricing information is the expected future price. It naturally fits into the decision-making environment.
Price, P0 = D1/(r - g)
Dividends, D1 = 1
Rate of return, r = 10%
Dividend growth, g = 5%
Expected price, P0 = 1/(10% - 5%)
P0 = 1/0.05
P0 = 20.00
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