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2. Company B paid dividend in 2021 of 0.9 USD, in line with the expected dividend growth of 5% each year. Company C has announced
2. Company B paid dividend in 2021 of 0.9 USD, in line with the expected dividend growth of 5% each year. Company C has announced it expects to pay a 1.8 dividend to common shareholders in 2022, and its cost of equity (CAPM) is of 8.9%. (Companys C paid dividend in 2020 of 1.5). Both companies are from the tech sector where the expected rate of return of the market is of 9%. a. Which company has the most expensive share price ? b. Wich if the company would you rather buy if you had 25 to spend ?
| 2. Company B paid dividend in 2021 of 0.9 USD, in line with the expected dividend growth of 5% each year. | |||||||||||
| Company C has announced it expects to pay a 1.8 dividend to common shareholders in 2022, and its cost of equity (CAPM) is of 8.9%. (Companys C paid dividend in 2020 of 1.5). | |||||||||||
| Both companies are from the tech sector where the expected rate of return of the market is of 9%. | |||||||||||
| a. Which company has the most expensive share price ? | |||||||||||
| b. Wich if the company would you rather buy if you had 25 to spend ? | |||||||||||
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