Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL nominal price. Today, earning per share of our company is 60 kuruş and the company has announced that payout ratio is 40%. If the expected return on equity is 24%, a What is the current price of one share today? b. What would be the price of one share 5 years later (Ps)? c. What would be the total market value of the equity 5 years later?
Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL nominal price. Today, earning per share of our company is 60 kuruş and the company has announced that payout ratio is 40%. If the expected return on equity is 24%, a What is the current price of one share today? b. What would be the price of one share 5 years later (Ps)? c. What would be the total market value of the equity 5 years later?
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 4P
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Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL nominal price. Today, earning per share of our company is 60 kuruş and the company has announced that payout ratio is 40%. If the expected
a What is the current price of one share today?
b. What would be the price of one share 5 years later (Ps)?
c. What would be the total market value of the equity 5 years later?
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