Question
On Paper Please Pager Inc. is in a declining industry. Sales, earnings, and dividends are all decreasing at a rate of 8% per year. Investors
On Paper Please
Pager Inc. is in a declining industry. Sales, earnings, and dividends are all decreasing at a rate of 8% per year. Investors have a required return of 15% and the next dividend is expected to be $3. a) What is the value of a share?
b) What price do you forecast for the stock next year?
c) Calculate the dividend yield and the capital gain (loss) yield.
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
