Market analysts expect Tadda Ltd's current earnings per share of $2.50 to grow at 5% per annum forever. The firm is also expected to retain 60% of these earnings forever. If the expected return on this stock is 20%, What is the price of Tadda Ltd's shares today?

Answer rating: 100% (QA)

Retaintion ratio 60 so Payout rahio 40 ... View the full answer