Arcturus (Pty) Ltd has just paid a dividend of 25 cents per share. The shareholders required...
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Arcturus (Pty) Ltd has just paid a dividend of 25 cents per share. The shareholders required rate of return is 13% per year, Arcturus (Pty) Ltd has decided that no dividends will be paid out for two years. Instead, the funds will be reinvested in an expansion project during those years. The company expects to pay a dividend of 45 cents in year 3, and dividends are expected to grow by 8% per annum thereafter. Calculate the current market value of one share in Arcturus (Pty) Ltd. State your answer in rands (R), rounded to two decimal places. Arcturus (Pty) Ltd has just paid a dividend of 25 cents per share. The shareholders required rate of return is 13% per year, Arcturus (Pty) Ltd has decided that no dividends will be paid out for two years. Instead, the funds will be reinvested in an expansion project during those years. The company expects to pay a dividend of 45 cents in year 3, and dividends are expected to grow by 8% per annum thereafter. Calculate the current market value of one share in Arcturus (Pty) Ltd. State your answer in rands (R), rounded to two decimal places.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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