ABC Hotels Plc has 128,000 shares outstanding. The expected earnings are E3.1 million for the upcoming year.

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ABC Hotels Plc has 128,000 shares outstanding. The expected earnings are E3.1 million for the upcoming year. Thereafter, it expects to earn E2.6 million each year.

Estimate the share price for a required rate of return of 9%? Assume all earnings are paid as dividends.

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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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Posted Date: Mar 15, 2023 03:17 AM

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ABC Hotels Plc has 128,000 shares outstanding. The expected earnings are E3.1 million for the upcoming year.

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To estimate the share price we can use the Gordon Growth Model which is given as P D r ... View the full answer

Data Analysis and Decision Making

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