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Use Dividend Valuation Model Exercise 2. Hairee Bhd's stock is selling at RM20 per share. Its current EPS and dividend payout ratio are RM2.50 and
Use Dividend Valuation Model
Exercise 2. Hairee Bhd's stock is selling at RM20 per share. Its current EPS and dividend payout ratio are RM2.50 and 30% respectively. Given the slow economy, the firm expects that the growth rate of EPS and dividend to decline by 5% for the next two years but then grow at a more gradual rate indefinitely. If the required rate of return for similar investment is 15%, what is the projected price of the company at the end of year 2Step by Step Solution
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