Casual Construction Corporation (CCC) earned $60,000,000 during 2012. The firm expects to earn $63,000,000 during 2013, in
Question:
a. What is CCC’s current dividend per share? What is it expected to be next year?
b. Use the Gordon growth model (see Equation 5.4) to calculate CCC’s stock price today.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Step by Step Answer:
a Since CCC pays out 40 of its earnings as dividends total dividends for 2012 are 24 mill...View the full answer
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Related Book For 
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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