(a) What actions that shareholders can take to ensure that management's and shareholders' interests are aligned? Discuss (b) Prima Corporation's dividend per share next year is expected to be RM3.02 and the firm expects dividends to grow atarate of S% per year for the foreseeable future. If you can earm 13% on similar-risk investments, what is the most you would be willing to pay per share? you can earn only 10% on similar risk investments, what is the most you would be willing to pay per share? Compare and contrast your findings, and explain the impact of changing risk on share value

(a) What actions that shareholders can take to ensure that management's and shareholders' interests are aligned? Discuss (b) Prima Corporation's dividend per share next year is expected to be RM3.02 and the firm expects dividends to grow atarate of S% per year for the foreseeable future. If you can earm 13% on similar-risk investments, what is the most you would be willing to pay per share? you can earn only 10% on similar risk investments, what is the most you would be willing to pay per share? Compare and contrast your findings, and explain the impact of changing risk on share value

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 5MC

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