Question
Alpha Corp. has a dividend payout ratio of 0.52, a return on equity of 0.10 and you estimate that it will pay a dividend of
Alpha Corp. has a dividend payout ratio of 0.52, a return on equity of 0.10 and you estimate that it will pay a dividend of $0.50 next year. Calculate the intrinsic value of Alpha Corp. assuming that the required return on Alpha Corp. is 12.0%.
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
