You have been hired as a financial analyst in a consulting firm which primary deals with financial institutions to provide services related to mergers and acquisitions of businesses.As your first project you have been teamed up with a division in your company which specialize in investment appraisals and currently have following tasks in hand: ⦁ Fintech corporation (a long term client) need advice based on higher dividend payout as it is considering to invest in stocks and have following couple of options: RUBIK LLC : Share is currently trading at $56 with expected growth rate of 6% , whereas investor’s required rate of return is 9 % . WOODWORKS LLC : Share is currently trading at $23 with expected growth rate of 2.5% , whereas investor’s required rate of return is 9 % (same as above). You are expected to calculate dividend per share by Divided Growth Model for RUBIK and WOODWORKS.
You have been hired as a financial analyst in a consulting firm which primary deals with financial institutions to provide services related to mergers and acquisitions of businesses.As your first project you have been teamed up with a division in your company which specialize in investment appraisals and currently have following tasks in hand:
⦁ Fintech corporation (a long term client) need advice based on higher dividend payout as it is considering to invest in stocks and have following couple of options:
RUBIK LLC : Share is currently trading at $56 with expected growth rate of 6% , whereas investor’s required
WOODWORKS LLC : Share is currently trading at $23 with expected growth rate of 2.5% , whereas investor’s required rate of return is 9 % (same as above).
You are expected to calculate dividend per share by Divided Growth Model for RUBIK and WOODWORKS.
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