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Please give me some urgent assistance on this question please and thank you. will certainly give a thumb up A. An optimistic forecast for Aluminum
Please give me some urgent assistance on this question please and thank you. will certainly give a thumb up
A. An optimistic forecast for Aluminum demand implies dividends per share for Noranda Bauxite for the next 5 years of: $0 (2021), $0.05 (2022), $0.07(2023),$0.1(2024),$0.1 (2025). Due to retired plants in the on the South Coast and tougher regulations with Bauxite Mining in the Cockpit Country you expect a shrinking market from then onwards with falling dividends at 8% p.a. The costs of equity are 10%. What is the fair value of Noranda Bauxite Company? (7 marks)Step by Step Solution
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