Beaksley, Inc. is a very cyclical type of business which is reflected in its dividend policy....
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Beaksley, Inc. is a very cyclical type of business which is reflected in its dividend policy. The firm pays a R2,00 a share dividend every other year. The last dividend was paid last year. Five years from now, the company is repurchasing all of the outstanding shares at a price of R50 a share. At an 8 per cent rate of return, what is this share worth today? Beaksley, Inc. is a very cyclical type of business which is reflected in its dividend policy. The firm pays a R2,00 a share dividend every other year. The last dividend was paid last year. Five years from now, the company is repurchasing all of the outstanding shares at a price of R50 a share. At an 8 per cent rate of return, what is this share worth today?
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To calculate the present value of the share we need to consider the dividends that will be received ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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