Question
Suppose that the price of one LADA Corp. share is $20,8 (20.8). You know that the company has already paid its annual dividend of $1.60
Suppose that the price of one LADA Corp. share is $20,8 (20.8). You know that the company has already paid its annual dividend of $1.60 per share, and you anticipate that the companys futures dividends will grow at a rate of %4 per year. Besides LADA funds itself with %60 its equity. In the economy the average cost of external debt is % 10 and corporation's income is taxed by %30.
- What should be the company's estimated return on equity?
- What is the estimated WACC of LADA Corp.?
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The Value Investor's Handbook
Authors: Andrew P.C.
1st Edition
1098810449, 978-1098810443
