Resume paying annual dividends in two years time

Assignment Help Financial Management

Reference no: EM131865855

Canadian-based mining company El Dorado Gold (EGO) suspended its dividend in March 2016 as a result of declining gold prices and delays in obtaining permits for its mines in Greece. Suppose you expect EGO to resume paying annual dividends in two years time, with a dividend of $0.25 per share, growing by 2% per year. If EGO’s equity cost of capital is 10%, what is the value of a share of EGO today?

Reference no: EM131865855

Questions Cloud

Corporate investment in mexico to construct turbines : The U. S.- based MNC Fairwon is contemplating a major corporate investment in Mexico to construct turbines.

Identify six sources of short term financing available : Identify six sources of short term financing available in financing new business and give detailed explanation as to the process involved

Discuss the impact of this legislation on your local school : Imagine you work for a national employment/placement agency. Your clients range from the first-time job seeker to the executive level.

What is the balance in cash on march : Mar. 1 The business received $ 10000 cash from the owner of the business, Morris Tharps. What is the balance in Cash on March 6

Resume paying annual dividends in two years time : Suppose you expect EGO to resume paying annual dividends in two years time, with a dividend of $0.25 per share,

Determine x using a focal date : Determine X using a focal date 8 months from now at simple interest rate r = 12%.

How much did your father originally invest : Today, he gave you the proceeds of that investment which totaled $51,480.79. How much did your father originally invest?

What are his chances for getting the loan : Slick will not be an active manager, his partner will run the business. What are his chances for getting the loan?

What is the company new cost of equity : The interest rate on the debt is 6.1 percent. Ignoring taxes, what is the company's new cost of equity? What is its new WACC?

User Account

All Pages