Euro Tech. earned $120 million this year. They announced an annual dividend of 40% of its earnings.
Fantastic news! We've Found the answer you've been seeking!
Question:
Euro Tech. earned $120 million this year. They announced an annual dividend of 40% of its earnings. The Tech Company has around 30 million shares outstanding. It is expected that the company's earnings will grow at an 8% annual rate forever. The required return on their shares is 12%.
a) Calculate the current dividend per share.
b) Calculate the expected dividend per share for next year.
c) Using the dividend discount model, calculate Euro Tech.'s share price today.
d) Using dividend discount model, calculate the share price in the next 3 years.
Related Book For
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave
Posted Date: