The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

Michaels ltd has just paid ordinary shareholders an annual dividend amount of \$1.75 per share and management has announced that it expects future dividends to grow at 4% per annum. The companys ordinary shares are currently selling in the market for \$29.50.a) what is the expected rate of return from…
Market price of the shre=\$29.50 currently paying devidend=\$1.75 r =d1/p0 =\$1.75/\$29.50 =0.0593percent a)expected rate of return= devidend yield growth rate =0.0593 0.04 =9.93% b)if I require 14% return I…

on’t purchase the shares.Because of the Expected return is coming from the shares 9.93% which is less than the as I required return 14%.

## GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.