FIND A SOLUTION AT Academic Writers Bay
Q4:
b)
The dividend payout is on 6.50 this year and is expected
to grow at 4.5%. The industry return is at 11.5%.
Current share price can be found from dividend discount
method. The same comes at:
c)
Dividend payment is fixed at 15% hence $100*0.15 =
$15
r= 0.125
Value of preference share is 15/0.125 = $120
Q4B)
a)
The current market value of Magnum will be the sum of
debt, equity and preference share.
Thus,
Market value of ordinary share = no of ordinary share
outstanding price per share
- Assignment status: Already Solved By Our Experts
- (USA, AUS, UK & CA PhD. Writers)
- CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS
QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER