The following ABC data are available: 1) profit to be retained: 75,000 m.u.; 3. 2) Expected rate of return on the investment in an ABC share: 15%; 3) the company follows the constant dividend increase policy; the fundamental analysis indicates that the assumption that the dividend will constantly increase is reasonable. 4) equity at the beginning of 2014: 1,100,000 m.u.; 5) number of shares issued: 100,000; 6) profit after tax in 2014: 200,000 m.u.; Price ABC shares using the Gordon-Shapiro formula.
The following ABC data are available: 1) profit to be retained: 75,000 m.u.; 3. 2) Expected rate of return on the investment in an ABC share: 15%; 3) the company follows the constant dividend increase policy; the fundamental analysis indicates that the assumption that the dividend will constantly increase is reasonable. 4) equity at the beginning of 2014: 1,100,000 m.u.; 5) number of shares issued: 100,000; 6) profit after tax in 2014: 200,000 m.u.; Price ABC shares using the Gordon-Shapiro formula.
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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Transcribed Image Text:The following ABC data are available:
1) profit to be retained: 75,000 m.u.;
3.
2) Expected rate of return on the investment in an ABC share: 15%;
3) the company follows the constant dividend increase policy; the fundamental analysis indicates that
the assumption that the dividend will constantly increase is reasonable.
4) equity at the beginning of 2014: 1,100,000 m.u.;
5) number of shares issued: 100,000;
6) profit after tax in 2014: 200,000 m.u.;
Price ABC shares using the Gordon-Shapiro formula.
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