Question;Sultan Services has 1.2 million shares outstanding. It expects earnings at the end of the year of $5.6 million. Sultan pays out 60% of its earnings in total-40% paid out as dividends and 20% used to repurchase shares. If Sultan?s earnings are expected to grow by 7% per year, these payout rates do not change, and Sultan?s equity cost of capital is 9%, what is Sultan?s share price?
Paper#50547 | Written in 18-Jul-2015Price : $22