Power current market share price

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Consider the DDM valuation of a maturedimplied growth rate 1.0%B.1.5%C.2.0%D.2.5%E.3.0% (stable growth) public utility company, Power Ltd. In its most recent financial statements, the company reported an EPS of $1.00 and paid a dividend per share (DPS) of $0.80. The company's payout ratio is constant, ROE = 7.5%, and cost of equity = 7.45%. Power's current stock price in the market is $12.53. Estimate the (in DPS) that is incorporated in Power's current market share price.

Reference no: EM133073124

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