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Company Z earnings and dividends per share will grow indefinitely by 4.9% a year if next year's dividend is $8.3. The market capitalization rate is
Company Z earnings and dividends per share will grow indefinitely by 4.9% a year if next year's dividend is $8.3. The market capitalization rate is 14.0%. If Company Z were to distribute all its earnings, it could maintain a level dividend stream of $10.1 a share. How much is the market actually paying per share for growth opportunities?
A. -13.2
B. 39.5
C. 19.1
D. 3.3
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Of Synthetic Finance Three Essays Of Speculative Materialism
Authors: Benjamin Lozano
1st Edition
1138790842, 978-1138790841
