A company expects an indefinite stream of future dividends of P200,000 and a required rate of return of 16 percent. There are 100,000 shares. REQUIREMENTS: 1. What is the market value of the stock? 2. What is the market price per share?
A company expects an indefinite stream of future dividends of P200,000 and a required rate of return of 16 percent. There are 100,000 shares. REQUIREMENTS: 1. What is the market value of the stock? 2. What is the market price per share?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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Question
A company expects an indefinite stream of future dividends of P200,000 and a required
REQUIREMENTS:
1. What is the market value of the stock?
2. What is the market price per share?
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