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T3 EIC 6 (Tutorial) Your next meeting is for share acquisition. You've been t...

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T3 EIC 6 (Tutorial)

Your next meeting is for share acquisition. You've been tasked to

provide the value of two shares currently trading in the market.  

                                   Abbacus Tech.         Matheon1st Dividend             $5                                $8

Dividend growth      2%                                0%

Current Price            $139                           $142

A dividend is income paid by a share. All shares are typically valued

as ordinary perpetuities as no share guarantees a dividend payment upon

purchase of the share. 

Berkshire Hathaway does not intend to sell the share after purchase. Value each share, compare it to the current price and provide a recommendation on which is the best buy, use a 5.5% discount rate. 

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