Question
20: XYZ Ltd has a current share price of $4.89 and is paying dividends of $0.66 per share. If the assumptions underlying the earnings capitalisation
20:
XYZ Ltd has a current share price of $4.89 and is paying dividends of $0.66 per share. If the assumptions underlying the earnings capitalisation model hold, what is the value of XYZ's P/E multiplier?
21:
Assuming that the dividend discount model holds, the price of one share in ABC Ltd is $18.76. If the current dividend is $0.80 per share and the cost of equity capital is 10% per annum, what is the implied growth rate?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
