Suppose a company's current earnings per share (EPS) are $3.50, and the company's dividend payout ratio is
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Suppose a company's current earnings per share (EPS) are $3.50, and the company's dividend payout ratio is 50%. The company plans to increase its dividend payout ratio to 60%, while maintaining the current EPS. If the required rate of return for the company's common stock is 10%, what will be the company's new stock price?
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