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Fiat Chrysler Ltd expects to earn $35.15 per share this year and originally intended to payout $7.21 in dividends to shareholders and retain the remainder
Fiat Chrysler Ltd expects to earn $35.15 per share this year and originally intended to payout $7.21 in dividends to shareholders and retain the remainder to invest in projects on electric cars with an expected return on equity of 8.3% p.a. If the investor's required rate of return is 13.8% p.a., what would happen to the price of Fiat Chrysler Ltd's shares if it instead raised its dividends to $10.64 this year and then continued with that same dividend payout ratio permanently? HTML Editora
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