Kay Jay, Inc. is expected to pay its first ever annual dividend one year from now, based on an expected earnings per share of $2.50 and a payout ratio of 40%. Future earnings per share are expected to grow indefinitely at 4% per year, and Kay Jay is expected to maintain the 40% payout ratio. If Kay Jay’s cost of equity capital is 15%, at what price should Kay Jay’s stock to sell for today?
Be advised that this service is completely legal and does not infringe any college/university law. The paper received from our company may be used as a source for a deeper comprehension on the subject.
WEBSITE LIVE CHAT:
Any Given Deadline