Share Values A2A SpA is an Italian utility firm. Its most recent dividend was 0.013 per share.

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Share Values A2A SpA is an Italian utility firm. Its most recent dividend was €0.013 per share. In the past year, the company has experienced financial difficulties and the share price has dropped by more than 20 per cent. However, long-term growth in dividends is anticipated to be 7 per cent for ever. If A2A shares currently sell for €0.52, what is the required return? Does this make sense? Explain.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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