Question
The Shell Company currently has a policy of paying out 30% of its earnings in dividends. Currently the market is expecting a return on equity
The Shell Company currently has a policy of paying out 30% of its earnings in dividends. Currently the market is expecting a return on equity if 10%. The firm has just paid a dividend of $1 and the current stock price is $10. What is required rate of return on Shell stock ?
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Handbook Of The Economics Of Finance Volume 2A
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
0444535942, 978-0444535948
