Question
Pioneer Limited pays a constant dividend of $0.20 per share. A fund manager is considering purchasing the shares as part of an investment portfolio. The
Pioneer Limited pays a constant dividend of $0.20 per share. A fund manager is considering purchasing the shares as part of an investment portfolio. The fund manager requires a return of 10 per cent on the investment. Calculate the price that the fund manager would be willing to pay for the shares.
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
