Share Valuation Suppose you know that a companys equity currently sells for 47 per share, and the

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Share Valuation Suppose you know that a company’s equity currently sells for £47 per share, and the required return on the equity is 11 per cent. You also know that the total return on the equity is evenly divided between a capital gains yield and a dividend yield. If it is the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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