=+used to pay a dividend immediately. Under current policy, post-tax earnings (and free cash flow) of 10m
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=+used to pay a dividend immediately. Under current policy, post-tax earnings (and free cash flow) of £10m per year are expected to continue indefinitely. All earnings in future years are expected to be paid out as dividends in the year of occurrence.
Calculate a
The value of the company before the current dividend is paid from the £10m of cash.
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Related Book For
Corporate Financial Management And How To Write Essays And Assignments
ISBN: 978-1405882897
Coursepack Edition
Authors: Glen Arnold
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