3. DAEHAN Merchandising has outstanding 200,000 ordinary shares pero value P100. The current price of the...

 

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3. DAEHAN Merchandising has outstanding 200,000 ordinary shares pero value P100. The current price of the ordinary shares is P120 and the dividend per share amounts to P3. DAEHAN is expecting a 10% growth rate and is subject to 30% income tax rate. Compute the cost of ordinary shares assuming that DAEHAN plans to source the long-term funds from issuing ordinary shares. 3. DAEHAN Merchandising has outstanding 200,000 ordinary shares pero value P100. The current price of the ordinary shares is P120 and the dividend per share amounts to P3. DAEHAN is expecting a 10% growth rate and is subject to 30% income tax rate. Compute the cost of ordinary shares assuming that DAEHAN plans to source the long-term funds from issuing ordinary shares.

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