Dividend Discount Model Calculation for ABC Industries

Very Easy Equity Valuation Applications Discounted Dividend Valuation

ABC Industries anticipates paying a dividend of $1.50 per share next year. The company's dividends are expected to grow at a steady rate of 5% annually. If an investor requires a 10% return on this investment, what is the fair value of one share of ABC Industries according to the Dividend Discount Model (DDM)?

$30.00