What is the intrinsic value of this share

Assignment Help Financial Management

Reference no: EM131621916

A company has declared a dividend of Dh. 3..00 receivable at the end of the current year. The earning of the company are growing at 12%.

(i) What is the intrinsic value of this share? the required rate of return or cost of equity capital is 15%.

(ii) What is would be the investors holding period gain if the investor purchases the share from the market now and sells it after 1 year receiving the dividend.

(iii) What is the dividend yield of the share?

Reference no: EM131621916

Questions Cloud

Coupon rate and the current market interest rate of bond : What is the difference between a mutual fund and mutual fund family? What is the difference between the coupon rate and current market interest rate of a bond.

Evaluate the various internal and external sources of funds : Evaluate the various internal and external sources of funds available for the financing of foreign subsidiaries.

Had they sold their entire inventory at their current prices : Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Andrews Corp.?

What will be the approximate capital gain of bond : what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged?

What is the intrinsic value of this share : What is the intrinsic value of this share? the required rate of return or cost of equity capital is 15%.

What are stated and expected yields to maturity of the bonds : The firm can handle these lower payments. What are the stated and expected yields to maturity of the bonds?

What results of calculation mean to you as project manager : Describe what the results of each calculation mean to you as a project manager.

About emotional issues related to lee financial condition : Comments about emotional issues related to Lee's financial condition. Comments about Lee's cash flow.

What is their break-even level of operating income : what is their break-even level of operating income? (i.e., the level of EBIT where EPS is the same for both firms)?

User Account

All Pages