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pls answer he current Earnings per share of Top Fruit Company are Rs.3.00. The company's Finance Manager has made the following projections for the company
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he current Earnings per share of Top Fruit Company are Rs.3.00. The company's Finance Manager has made the following projections for the company starting from next year (Year 1): End of Year EPS growth Dividend payout ratio 20% 25% 2 20% 25% 3 20% 25% 4 onwards 4% 50% The growth is computed in relation to the previous year. Assuming that the expected return on the stock remains constant over time at 15% pa, what is the current stock price Step by Step Solution
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