Calculate the value of equity

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Reference no: EM132014403

Suppose Zamil Corporation has just issued a dividend of SR 3.25 per share. Subsequent dividends will remain at SR 3.25 indefinitely. Returns on the stock of firms like Zamil are currently 10%. What is the value of one share of stock? Q2. Your required rate of return is 15%. Z Corp. is currently selling for SAR40 and the most recent dividend paid was SAR 2.55. The expected constant growth rate is 8%. What is the maximum you should pay for this stock? Q3. BLC Industries paid a dividend of SAR1.50 and dividend will be constant for ever. If your required rate of return is 10%. Calculate the value of equity.

Reference no: EM132014403

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