Share price is 4000 expected dividend is 450 one year from


a. Share price is $40.00, expected dividend is $4.50 one year from now, growing thereafter at a rate of 3% per year in perpetuity. What is the return on equity?

b. Expected dividend is $7.50 one year from now, dividend yield is 8%, return on equity is 14%. What is the share price?

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Financial Management: Share price is 4000 expected dividend is 450 one year from
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