Question
Sharkers Company supplied you with the following information: Share Dividend expected next year (R) Dividend Growth Rate (%) Required Return (%) A 1.10 9 12
Sharkers 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 Gordon's growth model) (10 points)
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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