Question
XYZ Corp. has $34 million dollars that it wishes to pay out as dividends, and a cost of equity of 0.22. If it pays out
XYZ Corp. has $34 million dollars that it wishes to pay out as dividends, and a cost of equity of 0.22. If it pays out $12 million in dividends today, what dividend should they pay 1 year from today to make shareholders indifferent between this dividend scheme and one where shareholders get all of the cash today?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
8th Edition
0071078401, 978-0071078405
