A company earns 10 cents (after interest) per share and pays a regular dividend of 15...
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A company earns 10 cents (after interest) per share and pays a regular dividend of 15 cents per share. The other 5 cents is kept in the business to help reduce gearing and will earn 7% per annum. The current market value of a share is $1.50 cents. What is the rate of return? A company earns 10 cents (after interest) per share and pays a regular dividend of 15 cents per share. The other 5 cents is kept in the business to help reduce gearing and will earn 7% per annum. The current market value of a share is $1.50 cents. What is the rate of return?
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The rate of return for this investment can be broken down into two parts dividend yield and capital ... View the full answer
Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
Posted Date:
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