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Say we want to estimate the per-share value of a big private car company. We know the company currently pays a S0.60 per share dividend
Say we want to estimate the per-share value of a big private car company. We know the company currently pays a S0.60 per share dividend annually a) Compute the dividend multiple for each of the comparable companies and the average price to dividend multiple for these companies Average Price-Dividend Ratio: ompany or GM Chevrolet Dividend per share 0.40 $0.20 $1.50 price 14 $10 $45 (b) What is the per-share value of the private company assuming its price-dividend ratio equals the average multiple from (a)? Per share value
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