Question
QUESTION ONE The managing Director of GuyGuy company ltd, a listed pharmaceutical company, intends to boost its share price by having a higher dividend payout
QUESTION ONE
The managing Director of GuyGuy company ltd, a listed pharmaceutical company, intends to boost its share price by having a higher dividend payout ratio. Below is the financial highlight of Guy guy ltd for 2016.
Earnings per shareGHC8
Dividend payout ratio30%
Discount rate18%
Return on retained earnings25%
a) Briefly discuss the managing director's assertion of increasing the company's share price by having a higher dividend payment.
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
