Problem 5: Ordinary Shares, constant growth rate: The expected rate of return of the shareholders is 18%. The dividend per share was P27 last year. The growth rate of the share prices is 8%. There are 30,000 shares issued. How much is the total value of the equity?

Problem 5: Ordinary Shares, constant growth rate: The expected rate of return of the shareholders is 18%. The dividend per share was P27 last year. The growth rate of the share prices is 8%. There are 30,000 shares issued. How much is the total value of the equity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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