Consider the following information regarding Domino Pizza Enterprizes Ltd, a listed company in: Australia: Risk-free rate 2.2%

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Question:

Consider the following information regarding Domino Pizza Enterprizes Ltd, a listed company in:

Australia:

Risk-free rate 2.2%

Market Risk Premium 7.0%

Beta of Share: 0.95

Last Dividend paid $4.50 (assume dividend only paid annually by Domino)

Forecast dividend growth rate 3.0%

Current Price of ordinary share $74.6

Required:

Value an ordinary share in Dominos using the Gordon Constant Growth Dividend Model and decide if you would recommend a purchase of a batch of shares in this company at current price level.

Related Book For answer-question

Intermediate Financial Management

ISBN: 9780357516669

14th Edition

Authors: Eugene F Brigham, Phillip R Daves

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Posted Date: Jul 25, 2023 04:00 AM

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Consider the following information regarding Domino Pizza Enterprizes Ltd, a listed company in: Australia: Risk-free rate 2.2%

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To value an ordinary share in Dominos using the Gordon Constant Growth Dividend Model we need to cal... View the full answer

Intermediate Financial Management

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