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A firm has 9.0 million shares outstanding and expects its earnings at the end of the year to be $54 million. The firm's equity cost
A firm has 9.0 million shares outstanding and expects its earnings at the end of the year to be $54 million.
The firm's equity cost of capital is 10.6%. The firm plans to use 35% of its earnings each year to pay dividends and/or repurchase shares. If earnings are expected to grow at approximately 4.0% per year, What should be the firm's share price?
The firm's equity cost of capital is 10.6%. The firm plans to use 35% of its earnings each year to pay dividends and/or repurchase shares. If earnings are expected to grow at approximately 4.0% per year, What should be the firm's share price?
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To calculate the firms share price we need to use the dividend discount model which states that the ...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
