You bought 50 shares of Jollibee Food Corp. at Php 25 per share. The amount of dividend paid during the first period is Php 1.10 per share. Since JFC performs well in the PSE, you expected that their dividend payments will grow rate of 3%. Using the dividend valuation principle with the required rate of 5%, find the value one share of JFC. Under your assumptions, is JFC undervalued or overvalued in the market?
You bought 50 shares of Jollibee Food Corp. at Php 25 per share. The amount of dividend paid during the first period is Php 1.10 per share. Since JFC performs well in the PSE, you expected that their dividend payments will grow rate of 3%. Using the dividend valuation principle with the required rate of 5%, find the value one share of JFC. Under your assumptions, is JFC undervalued or overvalued in the market?
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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You bought 50 shares of Jollibee Food Corp. at Php 25 per share. The
amount of dividend paid during the first period is Php 1.10 per share.
Since JFC performs well in the PSE, you expected that their dividend
payments will grow rate of 3%. Using the dividend valuation principle
with the required rate of 5%, find the value one share of JFC. Under
your assumptions, is JFC undervalued or overvalued in the market?
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