Manguinnos' dividend per share is expected to grow indefinitely at 5% per year, keeping pace with...
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Manguinnos' dividend per share is expected to grow indefinitely at 5% per year, keeping pace with the overall growth of the economy. If next year's dividend is $10 and the market's required yield is 10%, what is the current share price? Marle Construcciones' stock price at January 1, 2002 is $22 and is expected to grow at 5% per year: a) What is the expected rate of return at the beginning of 2002? The expected dividend for that year would be $3. b) What was the expected dividend yield and capital gains on January 1, 2003? What is the relationship between the dividend yield and capital gains under the growth assumption? Manguinnos' dividend per share is expected to grow indefinitely at 5% per year, keeping pace with the overall growth of the economy. If next year's dividend is $10 and the market's required yield is 10%, what is the current share price? Marle Construcciones' stock price at January 1, 2002 is $22 and is expected to grow at 5% per year: a) What is the expected rate of return at the beginning of 2002? The expected dividend for that year would be $3. b) What was the expected dividend yield and capital gains on January 1, 2003? What is the relationship between the dividend yield and capital gains under the growth assumption?
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1Manguinnos Share Price Calculation Next years dividend D1 10 Growth rate g 5 Required r... View the full answer
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
Posted Date:
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