Question
10. XYZ corporation is currently paying a dividend of Rs.1.6/- per share on its Rs.10/- par common stock. Company expects to increase dividend @ rate
10. XYZ corporation is currently paying a dividend of Rs.1.6/- per share on its Rs.10/- par common stock. Company expects to increase dividend @ rate of 20% for first four years and 13% for next four years and then the growth rate will be 7% thereafter. If R.R.R is 16%. What value would you assign to the share?
11. XYZ corporation is currently paying a dividend of Rs.2.6/- per share on its Rs.12/- par common stock. Company expects to increase dividend @ rate of 20% for first four years and 13% for next four years and then the growth rate will be 7% thereafter. If R.R.R is 16%. What value would you assign to the share?
12. Alpha company made sales of PKR 100 Mn in 2019 and expecting that companys top line will increase by 10% in 2020. The management has controlled its overhead and operating expenses very well in the given year which will result in net margin of 15% . The company has 1 million outstanding shares and the management is expecting to pay 40% as cash dividend at the end of year. Based on the given data, calculate following: Net sales Net profit Earnings per share (EPS) Dividend per share
13. Refer Q12, P/E ratio is estimated to be 8 times for the year. Based on the provided data calculate the share price of the Alpha stock ?
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