Just paid a dividend of $3. Long term growth rate is 2.6% per annum. Cost of equity capital os 11.5% per annum and dividend payout ratio is to remain constant. What price today would you estimate for the shares?

Just paid a dividend of $3. Long term growth rate is 2.6% per annum. Cost of equity capital os 11.5% per annum and dividend payout ratio is to remain constant. What price today would you estimate for the shares?

Name: Just paid a dividend of $3. Long term growth rate is 2.6% per annum. C
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Description: Just paid a dividend of $3. Long term growth rate is 2.6% per annum. Cost of equity capital os 11.5% per annum and dividend payout ratio is to remain constant. What price today would you estimate for the shares?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 18MC

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