Ask Question
17 November, 21:05

High valley antiques would like to issue new equity shares if its cost of equity declines to 10.5 percent. the company pays a constant annual dividend of $1.60 per share. what does the market price of the stock need to be for the firm to issue the new shares

+3
Answers (1)
  1. 18 November, 00:32
    0
    The price of the share would be calculated as -

    Price of share = Annual constant dividend / Cost of equity

    Given, cost of equity = 10.5 %

    Annual constant dividend = $ 1.60

    Price of share = $ 1.60 : 10.50 %

    Price of share = $ 15.238 or $ 15.24
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “High valley antiques would like to issue new equity shares if its cost of equity declines to 10.5 percent. the company pays a constant ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers