Question
MyFriends is an internet company well enough established for the Board of Directors to approve annual dividend of $2.00 per share. Given the companies previous
MyFriends is an internet company well enough established for the Board of Directors to approve annual dividend of $2.00 per share. Given the companies previous performance investors anticipate the Board to increase the dividend at a rate of 5% per year. The current interest rate is 10%.
If the current market share price is $40 on the stock exchange, would this be a good buy? Why?
Calculate the share price and compare to $40. SHOW YOUR WORK.
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Management And Cost Accounting Tools And Concepts In A Central European Context
Authors: Andreas Taschner, Michel Charifzadeh
1st Edition
3527508228, 978-3527508228
