Question
Lowell Inc. has provided the following information at the end of LAST year: Net Income $100 million No. of shares 50 million Cosntant dividend
Lowell Inc. has provided the following information at the end of LAST year: Net Income $100 million No. of shares 50 million Cosntant dividend payout ratio = 50% Cost of equity capital = 10% Long-run earnings growth rate = 6% What is the estimated stock price? Hints: Dividend per share= EPS Dividend payout ratio PO = D1/(Ks-G)
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
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