Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL nominal price. Today, earning per share of our company is 60 kuruş and the company has announced that payout ratio is 40%. If the expected return on equity is 24%, a. What would be the dividend per share 1 year later? b What is the current price of one share today? d. What would be the price of one share 5 years later (Ps)? e. What would be the total market value of the equity 5 years later?

Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL nominal price. Today, earning per share of our company is 60 kuruş and the company has announced that payout ratio is 40%. If the expected return on equity is 24%, a. What would be the dividend per share 1 year later? b What is the current price of one share today? d. What would be the price of one share 5 years later (Ps)? e. What would be the total market value of the equity 5 years later?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 13P

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