Euro Tech. earned $120 million this year. They announced an annual dividend of 40% of its earnings. The Tech Company has around 30 million shares outstanding. It is expected that the company's earnings will grow at an 8% annual rate forever. The required return on their shares is 12%.

a) Calculate the current dividend per share.

b) Calculate the expected dividend per share for next year.

c) Using the dividend discount model, calculate Euro Tech.'s share price today.

d) Using dividend discount model, calculate the share price in the next 3 years.

Answer rating: 100% (QA)

Answer analyze Euro Techs stock using the dividend discount model DDM a Current Dividend per Share E... View the full answer