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iii) The share price of Ansaba Limited is GHS 50.00. The company has just announced that it will pay a dividend of GHS 5.00 per
iii) The share price of Ansaba Limited is GHS 50.00. The company has just announced that it will pay a dividend of GHS 5.00 per share next year. Analyst have determined that the growth rate of the company is 6% and this is likely to hold forever. a) What is the required return investors are demanding on Ansaba Limited? b) If the required rate of return is 20%, how much will you pay for this stock? c) Assuming a required return of 20% and the share price determined in question(b), what is the dividend yield of this company?
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