Question
Share price is $150.00, expected dividend is $12.00 one year from now, expected capital gain is 9%, what is the return on equity? a. Share
Share price is $150.00, expected dividend is $12.00 one year from now, expected capital gain is 9%, what is the return on equity?
a. Share price is $40.00, expected dividend is $4.50 one year from now, growing there after at a rate of 3% per year in perpetuity. What is the return on equity?
b. Expected dividend is $750 one year from now dividend yield is 5% etiim on equity is 14%, what is the share price ?
Step by Step Solution
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Step: 1
To calculate the return on equity ROE we need to consider both the dividend yield and the capit...
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
