What will its current price per share be

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Question - The Kam Sing Company (an all-equity company) currently has an after-tax cash flows of RM3.00 per share. It pays out 50% of its earnings in dividends. If it expects to keep the same payout ratio, and to earn 20% on future investments forever, what will its current price per share be? Assume the cost of capital (r%) is 15%.

Reference no: EM133031034

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