Step-1:Current share price of stock | |||||||
As per dividend discount model, | |||||||
Current share price | = | D1/(Ke-g) | Where, | ||||
= | $ 14.79 | D1 | = | $ 1.35 | |||
Ke | = | 14.12% | |||||
g | = | 4.99% | |||||
Step-2:Number of shares to be issued | |||||||
Number of shares to be issued | = | Total amount needed | / | Value per share | |||
= | $ 3,40,00,000 | / | $ 14.79 | ||||
= | 22,99,407 shares |
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