Company Z earnings and dividends per share will grow indefinitely by 5.3% a year if next years
Fantastic news! We've Found the answer you've been seeking!
Question:
Company Z earnings and dividends per share will grow indefinitely by 5.3% a year if next year’s dividend is $8.8. The market capitalization rate is 12.5 %. If Company Z were to distribute all its earnings, it could maintain a level dividend stream of $12.0 a share. How much is the market actually paying per share for growth opportunities?
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: