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Lisa [10]
3 years ago
7

Assume the firm’s dividend payment is $0.18, and that the required rate of return for the firm’s industry is 10.1%. What is the

market value of firm’s shares under the Dividend Discount Model? Group of answer choices $18.30 $17.77 $1.78 $1.83
Business
1 answer:
aleksandr82 [10.1K]3 years ago
7 0

Answer:

the market value of the share is $1.78

Explanation:

The computation of the market value of the firm under the dividend discount model is shown below:

The Market value of the share is

= Dividend Payment ÷ Required return

= $0.18 ÷ 10.1%

= $1.78

Hence, the market value of the share is $1.78

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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8 0
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Gnesinka [82]

Answer:

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Explanation: Hopefully this helped!

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