Multiple Choice
The latest dividend paid by ABC Ltd is 40 cents and the company retains 20 per cent of its earnings each year,which is invested to earn a rate of return of 25% p.a.Assuming the required rate of return on ABC's shares is 15% p.a. ,the price of ABC Ltd shares will be:
A) $3.33.
B) $5.
C) $4.
D) $4.20.
Correct Answer:
Verified
Correct Answer:
Verified
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