Maspeth Robotics shares are currently selling for 24 and have paid a dividend of 1
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Maspeth Robotics shares are currently selling for € 24 and have paid a dividend of € 1 per share for the most recent year. The following additional information is given:
The risk - free rate is 4 percent.
The shares have an estimated beta of 1.2.
The equity risk premium is estimated at 5 percent.
Based on the above information, determine the constant dividend growth rate that would be required to justify the market price of € 24.
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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Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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