Pdq corporation is forecast to have total earnings of 1


PDQ Corporation is forecast to have total earnings of $1 billion next year and to pay out a total of 25% of these earnings to shareholders in the form of share repurchases and dividends. PDQ Corporation has 100 million shares outstanding. Its earnings are forecast to grow at a rate of 6% constantly. The stock's required rate of return is 10%. What is the value of a share today? Answer in dollars and round to the nearest cent.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Pdq corporation is forecast to have total earnings of 1
Reference No:- TGS01178693

Expected delivery within 24 Hours