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What is the status of the shares in the market

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Reference no: EM132744980

Question: Assume that a company's shares has intrinsic value P125 per share and is trading at P130. This company requires an 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually.

a. How much the company will pay for dividend per share?

b. What is the status of the shares in the market?

Reference no: EM132744980

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