Question
Shakers Company supplied you with the following information: Share Dividend expected next year (R) Dividend Growth Rate (%) Required Return (%) A 1.10 9 12
Shakers Company supplied you with the following information:
| Share | Dividend expected next year (R) | Dividend Growth Rate (%) | Required Return (%) |
| A | 1.10 | 9 | 12 |
| B | 3.80 | 6 | 11 |
| C | 0.80 | 13 | 17 |
| D | 2.60 | 12 | 16 |
| E | 1.50 | 7 | 10 |
Required:
Calculation the value of each share by using the constant growth model (Hint: use Gordons growth model) (10 points)
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The AMA Handbook Of Financial Risk Management
Authors: John J. Hampton
1st Edition
0814417442, 978-0814417447
