EBK FOUNDATIONS OF FINANCIAL MANAGEMENT
EBK FOUNDATIONS OF FINANCIAL MANAGEMENT
17th Edition
ISBN: 9781260464900
Author: BLOCK
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 10, Problem 31P

Justin Cement Company has had the following pattern of earnings per share over the last five years:

Chapter 10, Problem 31P, Justin Cement Company has had the following pattern of earnings per share over the last five

The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings. Project earnings and dividends for the next year (20X6).

If the required rate of return ( K e ) is 13 percent, what is the anticipated stock price ( P 0 ) at the beginning of 20X6?

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EBK FOUNDATIONS OF FINANCIAL MANAGEMENT

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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY