微信扫一扫
实时资讯全掌握
Cork Co pays a dividend annually. It has just paid a dividend of 40 cents and has a policy of increasing the dividend each year. The company is all-equity financed, and raises new capital for investment from retained earnings. The company retains 50% of its earnings and invests these to earn a return on investment of 12% per annum. The company's cost of capital is 12%. Using the dividend valuation model, what should be the value of Cork's shares (to the nearest cent)? The share price in cents should be ________ cents. |