Assume AMP Ltd just paid 100% fully franked dividend of $0.84 per share. The dividend is expected to grow at a constant rate of 5% p.a. and the estimated cost of capital is 10%. Given a corporate tax rate of 30%, what is the present value of one share in AMP Ltd? Present value of one share = $ (to the nearest cent)

Assume AMP Ltd just paid 100% fully franked dividend of $0.84 per share. The dividend is expected to grow at a constant rate of 5% p.a. and the estimated cost of capital is 10%. Given a corporate tax rate of 30%, what is the present value of one share in AMP Ltd? Present value of one share = $ (to the nearest cent)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 13P

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