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Q4. Bee Bee Berhad has just paid dividends of RM3 per share. The earnings per share for the company was RM4. If you believe that
Q4. Bee Bee Berhad has just paid dividends of RM3 per share. The earnings per share for the company was RM4. If you believe that the appropriate discount rate is 11% and the long term growth rate in dividends is 6%, and earnings is 6%, you are required to compute the firm's price earnings (P/E) ratio. a. b. c. d. 6.25 8.25 15.00 50.00 None of the above Q5. A company's dividend last year was RM2.00. Dividends are expected to grow indefinitely at 7% and the required rate of return for the stock is 12%. What is the value of the stock today? b. c. d. RM2.00 RM2.14 RM16.67 RM40.00 RM42.80 e
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