Question: . Questions 20 - 23 are based on the following information relating to Turkey Turbine Corporation. The company paid a dividend of $.93 per share
. Questions 20 - 23 are based on the following information relating to Turkey Turbine Corporation. The company paid a dividend of $.93 per share quarterly, totaling to $3.72 for the most recent full year, on its common stock. Based on a study of the risk of owning this stock, analysts at Uruguay Investment Management Funds have determined that the required annual rate of return should be ke or r = 8.4%. The second analyst, Mr. Vanuatu, believes first analyst Uzbekistan is too optimistiche feels Turkey Turbine's future earnings and dividends will change in a fairly steady manner that he can model as constant growth of approximately negative 1.8 (-1.8%) per year. Under these assumptions, what is the highest price analyst Vanuatu thinks the Uruguay funds should be willing to pay per share for Turkey Turbine Corporation common stock? O A. $55.35 O B. $35.81 O C. $56.36 D. $43.49 O E. $0 (no value since the dividend stream is expected to decline)
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