Assume AMP Ltd just paid 100% fully franked dividend of $0.84 per share. The dividend is expected to grow at a constant rate of 5% p.a. and the estimated cost of capital is 10%. Given a corporate tax rate of 30%, what is the present value of one share in AMP Ltd? Present value of one share = $ (to the nearest cent)
Assume AMP Ltd just paid 100% fully franked dividend of $0.84 per share. The dividend is expected to grow at a constant rate of 5% p.a. and the estimated cost of capital is 10%. Given a corporate tax rate of 30%, what is the present value of one share in AMP Ltd? Present value of one share = $ (to the nearest cent)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume AMP Ltd just paid 100% fully franked dividend of $0.84 per share. The dividend is expected to grow at a constant rate of 5% p.a. and the estimated cost of capital is 10%. Given a corporate tax rate of 30%, what is the
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