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Last year, a company distributed P2.00 per share dividend. The company has a beta of 1.2, the
risk market return of 13% and the risk free rate of 6%.
Required:
What would be the stock price of the dividends were expected to have a zero growth?
What is the firm's current stock price if constant growth rate of 8% annually

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Last year a company distributed P200 per share dividend T.pdf

  • 1. Last year, a company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%. Required: What would be the stock price of the dividends were expected to have a zero growth? What is the firm's current stock price if constant growth rate of 8% annually