Question
A company has been paying a $0.88 dividend and as it faces no growth opportunities it is expected that the dividend will not change in
A company has been paying a $0.88 dividend and as it faces no growth opportunities it is expected that the dividend will not change in the future. If investors require a 23.21% return for this company, what is the share value? (Please round your answer to the nearest cent but exclude the $ sign when typing your answer.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the share value we can use the dividend discount model DDM The DDM ...
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
