Question

Tale ce s e following repurchases: 39.8 million in the year, nothing in two years, and $20 3 milion in three years. Aber that wil wep repurchasing and will issue dividends totaing 124.9 million in four years The total paid in dividends is expected to increase by 3.4 per year there has t o shares standing and an equity cost of capital of 10.6%, what is its price per share today? The stock price will be Round to the nearest cet)

Answer 1

Here is solution of your question. All the best

Set Aiwidend per thate in A yeas 24.9 Miwion1.6 Miu 15.563 Indeau in dividend nert year 15.563+.3.4 ofisS63 16.1 Aiv Per thare in stecy Lostot Cap- Diniderd grou) 16. 0.106-0.034) 223.6 Pnce in 4 yeal pex th ate 223.61 0.106) 2 223.61 4963 2 149. Now calawlate Cuiut price Cussent share price149,4