1. 8.1 Dividend growth and share valuation The Perth Shipping Company has just paid a cash dividend...
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1. 8.1 Dividend growth and share valuation The Perth Shipping Company has just paid a cash dividend of $2 per share. Investors require a 16 per cent return from investments such as this. If the dividend is expected to grow at a steady 8 per cent per year, what is the current value of the shares? What will the shares be worth in five years?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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