Question
Question 7 13 Marks Goble has been going through a difficult financial period. Over the past three years, its stock price has dropped from R50
Question 7
13 Marks
Goble has been going through a difficult financial period. Over the past three years, its stock price has dropped from R50 to R18 per share. Throughout this downturn, Goble has managed to pay a R1 dividend each year. Management feels the worst is over but intends to maintain the R1 dividend for three more years, after which they plan to increase it by 6% per year indefinitely. Comparable stocks are returning 11%.
7.1. If these projections are accurate, is Goble stock a good buy at R18? [10]
7.2. How do you think the market feels about Goble's management? [3
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
