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Please include work, steps and formulas to find the company's current market price per share. Current market price per share= expected dividend/(required rate of return-
Please include work, steps and formulas to find the company's current market price per share.
Current market price per share= expected dividend/(required rate of return- growth rate) Here, Expected return=$2.75*(1+6.5%) =$2.93 So, Current market price of share= $2.93/(15.3%-6.5%) =33.28 The Ellerton Co. is expected to pay dividends of $4.10, $4.65 and $4.90 at the end of years 1, 2 and 3, respectively. It is estimated that its share price will be $65.85 exactly three years from today. Let te be 15.6%. (a) Calculate the present value of the three dividends payments Step by Step Solution
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