Attis plc has reported pre-tax profits of £48 million and after-tax profits of £32 million for the year that has just ended. The business expects profits to increase by a further 25 per cent in the forthcoming year and then to stabilise at this figure. The business has 80 million £0.50 ordinary shares in issue and the market capitalisation of the business is £320 million. The dividend cover ratio of the business is held at a constant 2.5 times. what is the cost of the ordinary shares?
Attis plc has reported pre-tax profits of £48 million and after-tax profits of £32 million for the year that has just ended. The business expects profits to increase by a further 25 per cent in the forthcoming year and then to stabilise at this figure. The business has 80 million £0.50 ordinary shares in issue and the market capitalisation of the business is £320 million. The dividend cover ratio of the business is held at a constant 2.5 times. what is the cost of the ordinary shares?
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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Attis plc has reported pre-tax profits of £48 million and after-tax profits of £32 million for the year that has just ended. The business expects profits to increase by a further 25 per cent in the forthcoming year and then to stabilise at this figure. The business has 80 million £0.50 ordinary shares in issue and the market capitalisation of the business is £320 million. The dividend cover ratio of the business is held at a constant 2.5 times.
what is the cost of the ordinary shares?
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