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A company earns 15 cents (after interest) per share and pays a regular dividend of 25 cents per share. The other 5 cents is
A company earns 15 cents (after interest) per share and pays a regular dividend of 25 cents per share. The other 5 cents is kept in the business to help reduce gearing and will earn 3% per annum. The current market value of a share is $3.90 cents. What is the rate of return?
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
