Question: its not given Ultra Co. Dividends per share (DPS) Dividend payout ratio Market risk premium Stock price using DDM model Number of shares outstanding Total
Ultra Co. Dividends per share (DPS) Dividend payout ratio Market risk premium Stock price using DDM model Number of shares outstanding Total equity Beta $2.5 60% 10% $65 800,000 12,400,000 1.15 Premium Co. $3.40 65% 10% $76 1,150,000 15,240,000 1.4 1. The dividend growth rates for Ultra Co. and Premium Co. respectively, are equal to: A) 10.7%; 13.8% B) 16,1%, 25.6% C) 26.8%; 39.4% D) 13.8%; 10.7% OE) None of the above. 2. The market capitalization rate (r) of Premium Co.exceeds that of Ultra Co. by: A) 4.2% B) 4% C) 3.3% D) 3.8% E) None of the above
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