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Need solution on paper 7.- Mr Pallete is the CEO of Telefonica, the company has 2 Million shares outstanding. and the PE ratio is 20.
Need solution on paper
7.- Mr Pallete is the CEO of Telefonica, the company has 2 Million shares outstanding. and the PE ratio is 20. The company has bonds, which are being sold at 100%, for a total amount of 3 Millions. The company EBITDA is 55.000.000E, and the EPS is 25E. Mr. Pallete wants to stablish a fix dividend payment for the future which is consistent with the market value. Considering that the expected return is 10% and the growth rate is 0 , what should be the value for the dividend? (20 points)Step by Step Solution
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