Question
Last year a company gave cash dividends of $10 per share, its ROE was 30%, and it gave 80% of its profits as cash dividends.
Last year a company gave cash dividends of $10 per share, its ROE was 30%, and it gave 80% of its profits as cash dividends. The expected ROR from the stock market as a whole is 10%, the risk-free rate is 5% and the beta of this companys share is 1.2. It is currently trading in the market at $97 per share. Would you buy this share?
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
