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  • Following Information Is Available For Renaissance LTD.: Case 1: Return On Assets (R) Is 20% (R K)

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    Anonymous duzV27Mx3
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    The document provides information to calculate the share price of Renaissance Ltd. for different dividend per share (DPS) amounts and return on asset (ROA) percentages. It shows that when DPS is 4, 2, and 0 and ROA is 20% (greater than the cost of capital), the calculated share price is 26.67, 31.11, and 35.56 respectively.

    Originalbeschreibung:

    dividend theory_ walter

    Originaltitel

    Dividend Theories 9

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    The document provides information to calculate the share price of Renaissance Ltd. for different dividend per share (DPS) amounts and return on asset (ROA) percentages. It shows that when DPS is 4, 2, and 0 and ROA is 20% (greater than the cost of capital), the calculated share price is 26.67, 31.11, and 35.56 respectively.

    Copyright:

    © All Rights Reserved
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    Markieren Sie unangemessene Inhalte
    30 Ansichten1 Seite

    Following Information Is Available For Renaissance LTD.: Case 1: Return On Assets (R) Is 20% (R K)

    Hochgeladen von

    Anonymous duzV27Mx3
    The document provides information to calculate the share price of Renaissance Ltd. for different dividend per share (DPS) amounts and return on asset (ROA) percentages. It shows that when DPS is 4, 2, and 0 and ROA is 20% (greater than the cost of capital), the calculated share price is 26.67, 31.11, and 35.56 respectively.

    Copyright:

    © All Rights Reserved
    Als PDF, TXT herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
    von 1

    Question

    Following information is available for Renaissance Ltd.


    Cost of capital = K = 15%
    Earnings per share = E= 4
    Calculate the share price when DPS = 4, 2, 0 assuming Return on assets is 20%, 15%,
    10%

    Case 1: Return on Assets (r) is 20% (r >k)


    When DPS = 4
    / . / .
    Po= = = 26.67
    .
    When DPS = 2
    . / .
    = 31.11
    .
    When DPS = 0
    . / .
    .
    = 35.56

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