| Author: | Homework Help Classof1 | ISBN: | 1230000120813 |
| Publisher: | Classof1 | Publication: | April 10, 2013 |
| Imprint: | Language: | English |
| Author: | Homework Help Classof1 |
| ISBN: | 1230000120813 |
| Publisher: | Classof1 |
| Publication: | April 10, 2013 |
| Imprint: | |
| Language: | English |
Sooty Iron works, Inc has had declining sales and increasing expenses over the last decade and expects this trend to continue. As a result the company predicts that earnings and dividends will decline indefinitely at a rate of 4% per year. Sooty’s last dividend (D/0[) was $2 per share. If the market required rate of return is 12%, estimate the value of Sooty’s common stock.
Sooty Iron works, Inc has had declining sales and increasing expenses over the last decade and expects this trend to continue. As a result the company predicts that earnings and dividends will decline indefinitely at a rate of 4% per year. Sooty’s last dividend (D/0[) was $2 per share. If the market required rate of return is 12%, estimate the value of Sooty’s common stock.
