A share is expected to pay a dividend of $3.67 next year, and this dividend is expected to grow at the rate of 3% in perpetuity.  If the current price of the share is $36.44, what is the cost of ordinary shares for the firm? a. 13.37% b. 11.62% c. 9.86% d. 13.07%

Question 12?

Problem 4: Ordinary Shares, no growth rate: The expected rate of return of the shareholders is 18%. The expected dividend to be received one year from now is P27. What should the value of each share be?

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A firm has a dividend policy to pay a constant annual dividend of $0.40 per share to its common shareholders perpetually. If these shareholders required rate of return of 20%, what is the share price?   Question 14 options:   1)  $4   2)  $2   3)  $0.20   4)  $0.40

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5.2 (q3) A share has just paid a dividend of $4.96, and this dividend is expected to grow at the rate of 3% in perpetuity. If the current price of the share is $70.2, what is the cost of ordinary shares for the firm? a. 7.47% b. 10.28% c. 12.14% d. 10.07%