at what price will investors be willing to pay for share of stock 1....
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at what price will investors be willing to pay for share of stock
1. The executer of your late grandfather's estate has made the following offers to you: RM 50 million now RM 10 million a year for 8 years starting one year from now RM 120 million at the end of year 8 a. Select the option you will take if the interest rate is 10%? b. Identify whether your choice will change if the interest rate is 12%. Discuss the concept of shareholder wealth maximization. Your company expect to pay a dividend of RM 1, RM1.25 and RM 1.5 over the next three years. Thereafter dividends are expected to grow at 12 % per annum for two years then 8% indefinitely. If your cost of capital is 24, what price will investors be willing to pay for a share of your stock? Briefly explain why the return required by ordinary shareholders are different from the return required by bondholders. fumulating dividend policy of a stock exchange listed
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