Question
Consider the following scenario for AAA LTD. AAA LTD most recently paid annual dividend was $0.25 per ordinary share. AAA LTD ordinary shares currently sell
Consider the following scenario for AAA LTD. AAA LTD most recently paid annual dividend was $0.25 per ordinary share. AAA LTD ordinary shares currently sell for $8.25 in the stock market. Estimated constant growth rate of earnings and dividends is 2.5% per year, while the required rate of return (based on CAPM) is 5.8% per year.
| What is your valuation of the AAA LTD ordinary share? |
Based on your estimate of the share value, would you buy AAA LTD shares in the stock market?
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Family Matters Making The Right Financial Decision For Your Filipino Family
Authors: Belen Loreto Grand
1st Edition
1683509544, 978-1683509547
