Consider the following information regarding Domino Pizza Enterprizes Ltd, a listed company in Australia: Risk-free rate 2.2% Market Risk Premium 7.0% Beta of Share: 0.95 Last Dividend paid $4.50 (assume dividend only paid annually by Domino) Forecast dividend growth rate 3.0% Current Price of ordinary share $74.6 Required: Value an ordinary share in Dominos using the Gordon Constant Growth Dividend Model and decide if you would recommend a purchase of a batch of shares in this company at current price level.
Consider the following information regarding Domino Pizza Enterprizes Ltd, a listed company in Australia: Risk-free rate 2.2% Market Risk Premium 7.0% Beta of Share: 0.95 Last Dividend paid $4.50 (assume dividend only paid annually by Domino) Forecast dividend growth rate 3.0% Current Price of ordinary share $74.6 Required: Value an ordinary share in Dominos using the Gordon Constant Growth Dividend Model and decide if you would recommend a purchase of a batch of shares in this company at current price level.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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Consider the following information regarding Domino Pizza Enterprizes Ltd, a listed company in
Australia:
Risk-free rate 2.2%
Market Risk Premium 7.0%
Beta of Share: 0.95
Last Dividend paid $4.50 (assume dividend only paid annually by Domino)
Current Price of ordinary share $74.6
Required:
Value an ordinary share in Dominos using the
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