Question
Consider the following scenario for Chariot Limited (CHR Ltd). CHR Ltd's most recently paid annual dividend was $0.45 per ordinary share. CHR Ltd ordinary shares
Consider the following scenario for Chariot Limited (CHR Ltd). CHR Ltd's most recently paid annual dividend was $0.45 per ordinary share. CHR Ltd ordinary shares currently sell for $9.75 in the stock market. Estimated constant growth rate of earnings and dividends is 2.2% per year, while the required rate of return (based on CAPM) is 6.8% per year.
| What is your valuation of the CHR Ltd's ordinary share? | |
| Based on your estimate of the share value, would you buy CHR Ltd's shares in the stock market? |
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Dynamic Asset Allocation With Forwards And Futures
Authors: Abraham Lioui , Patrice Poncet
1st Edition
0387241078,038724106X
