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Assume that a company's shares has intrinsic value P125 per share and is trading at P130. This company requires an 6% minimum rate of return
Assume that a company's shares has intrinsic value P125 per share and is trading at P130. This company requires an 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually.
a. How much the company will pay for dividend per share?
b. What is the status of the shares in the market?
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