Jansken Co. has an ROE = .12 and a beta of 1.10. It plans to maintain indefinitely
Question:
Jansken Co. has an ROE = .12 and a beta of 1.10. It plans to maintain indefinitely its traditional retention ratio of .65. This year's earnings were $2.50 per share. This year's dividend was just paid. The consensus estimate of the coming year's market return is .10, and currently offer a .05 return. Find the price at which Jansken should sell using the DDM.
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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