HP S/ n is entering into 3 yrs remodelling and expansion project. The construction will have a limiting effect on earning during that time ,but when completed ,it sholud allow the company to enjoy much improved growth in earning and dividends .last year ,the company paid a dividend of rm3.40 .it expect zero growth in the next year .in year 2 &3, 5% growth sholud be a constant 10% per year.what is the maximum price share that an investor who require a return of 14% sholud pay for HPH common stock?
HP S/ n is entering into 3 yrs remodelling and expansion project. The construction will have a limiting effect on earning during that time ,but when completed ,it sholud allow the company to enjoy much improved growth in earning and dividends .last year ,the company paid a dividend of rm3.40 .it expect zero growth in the next year .in year 2 &3, 5% growth sholud be a constant 10% per year.what is the maximum price share that an investor who require a return of 14% sholud pay for HPH common stock?
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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HP S/ n is entering into 3 yrs remodelling and expansion project. The construction will have a limiting effect on earning during that time ,but when completed ,it sholud allow the company to enjoy much improved growth in earning and dividends .last year ,the company paid a dividend of rm3.40 .it expect zero growth in the next year .in year 2 &3, 5% growth sholud be a constant 10% per year.what is the maximum price share that an investor who require a return of 14% sholud pay for HPH common stock?
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