A company is expecting its sales to decline and has announced that it will be reducing...

Question

Question

A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 5.75% a year fo

business finance

Answer 1

Answer #1

The answer is c)

A B C D 1 Required rate of return on equ 9.75% 3 Dividend P.V factor Present value 4 0 2.5 1 5 1 2.36 0.911161731 2.147 6 2.

Calculation:-

B D 1 Required rate of return on equity = 3 Present value с 0.0975 P.V factor 1 =C4/(1+$C$1) =C5/(1+$C$1) 4 Dividend 2.5 =B4*

Answer 2

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