Consider the following scenario for Chariot Limited (CHR Ltd). CHR Ltd's most recently paid annual dividend was
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider the following scenario for Chariot Limited (CHR Ltd). CHR Ltd's most recently paid annual dividend was $0.45 per ordinary share. CHR Ltd ordinary shares currently sell for $9.75 in the stock market. Estimated constant growth rate of earnings and dividends is 2.2% per year, while the required rate of return (based on CAPM) is 6.8% per year.
What is your valuation of the CHR Ltd's ordinary share?
Answer 1
Choose...
$4.42
$10.45
$6.61
$9.78
$0.45
$3.09
$8.25
$7.77
$5.11
$10.00
$6.76
Yes
$9.75
$0.75
No
Based on your estimate of the share value, would you buy CHR Ltd's shares in the stock market?
Answer 2
Choose...
$4.42
$10.45
$6.61
$9.78
$0.45
$3.09
$8.25
$7.77
$5.11
$10.00
$6.76
Yes
$9.75
$0.75
No
Expert Answer:
Posted Date:
