Question
A company has just paid a dividend of 0.8 SEK per share. The dividends are expected to be the same in perpetuity (so zero growth).
A company has just paid a dividend of 0.8 SEK per share. The dividends are expected to be the same in perpetuity (so zero growth). The next dividend is payed in one year from now.
Assuming that the company has a return on equity of 9.8 percent, what is an appropriate market price for the stock today?
(Answers are rounded to one decimal)
a. 0.1 SEK
b. 0.9 SEK
c. 10.6 SEK
d. 8.2 SEK
e. -9.0 SEK
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Digital Business And Electronic Commerce
Authors: Bernd W Wirtz
1st Edition
3030634817, 9783030634810
