Question: . Linear Technology is in the high tech industry 2 years from now, the company expects the earnings per share (EPS)of 100 and payout of
. Linear Technology is in the high tech industry 2 years from now, the company expects the earnings per share (EPS)of 100 and payout of 50% of earnings as a dividend. - Once profitable, earnings and dividends will grow at 15% for 5years (in years 3-7) - From year 8. growth will be perpetual at 4%. If the required return is 20%, what are the shares currently worth? $0.6 $0.37 0 $0.81 O $0.19
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
