The required return on equity is 12 how many ordinary


If DLL decides to issue ordinary shares, it is expected to pay a constant dividend of $1 at the end of each year for five years (dividend of $1 starts in year 1), after which the dividend is expected to increase at a rate of 10% every year (i.e. the dividend is expected to be $1.10 in year 6).

The required return on equity is 12%. How many ordinary shares would DLL have to issue?

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Finance Basics: The required return on equity is 12 how many ordinary
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