Chloe Dickson is interested in purchasing the ordinary share of fair mount Ltd. which is currently priced
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Question:
Chloe Dickson is interested in purchasing the ordinary share of fair mount Ltd. which is currently priced at $37.45. The company expects to pay a dividend of $2.58 next year and expects to grow at a constant rate of 7 percent.
a. What should the market value of the share be if required rate of return is 12 percent
b. At the current Price of $37.45 shares of Fairmount Ltd a good Buy? why Or why not?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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