FUNDAMENTAL OF CORPORATE FINANCE
FUNDAMENTAL OF CORPORATE FINANCE
4th Edition
ISBN: 9781323942925
Author: Berk
Publisher: PEARSON
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Chapter 17, Problem 5P
Summary Introduction

Future Value of Payout: It refers to the expected amount of return on an investment in future. The present value of payout is multiplied by the cost of equity capital to calculate the future value of payout. It will affect the dividend decision of the company.

To determine:

Amount committed in perpetuity per year (future value of payout).

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