Constantly Company is a no growth firm and has 2 million shares outstanding. It is expected...
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Constantly Company is a no growth firm and has 2 million shares outstanding. It is expected to earn a constant P20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock. Constantly Company is a no growth firm and has 2 million shares outstanding. It is expected to earn a constant P20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock.
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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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