A share is trading at R606,82 per share. The share is expected to have a year-end dividend
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Question:
A share is trading at R606,82 per share. The share is expected to have a year-end dividend of R8,50 per share, and it is expected to grow at a constant rate throughout. The shares’ required rate of return is 11% (assume the market is in equilibrium with the required return equal to the expected return).
What is your forecast of the constant growth rate?
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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