=+dividend of only 4.0p per share this year-end. The prospects for the industry look gloomy, and the
Question:
=+dividend of only 4.0p per share this year-end. The prospects for the industry look gloomy, and the risk premium applicable to the company has increased, so that the cost of equity capital is now reckoned to be 20 per cent a year. What combined effect will all these changes have on the company’s market price per share?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Corporate Finance For Business The Essential Concepts
ISBN: 9783030924188
2nd Edition
Authors: Ronny Manos, Keith Parker, D. R. Myddelton
Question Posted: