Question
Scenario D (5 marks) Using the Gordon growth model, estimate the cost of this companys ordinary shares. Company D has ordinary shares of R25, their
Scenario D (5 marks)
Using the Gordon growth model, estimate the cost of this companys ordinary shares. Company D has ordinary shares of R25, their expected dividend is R3, and their expected growth rate is 10% per annum. The flotation cost of new shares is R2. Calculate the cost of the companys ordinary shares.
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
