How many new shares are to be issued by the company

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Problem 1: Price per share at the end of the year when dividend is not declared (i.e. D1 = 0):

Problem 2: Price per share at the end of the year when dividend is declared (i.e. D1 = 8):

Problem 3: How many new shares are to be issued by the company at the end of the accounting year when the above dividends are distributed,

Problem 4: How many new shares are to be issued by the company at the end of the accounting year when dividends are not distributed.

Problem 5: Valuation of the firm when dividend is not paid OR paid

Reference no: EM132932198

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