Answer to Question #88393 in Finance for Sabreen Rehana Nisha

Question #88393
CCA is also listed on the Australian Stock Exchange since 1970.
1. What is the average annual dividend growth rate for CCA between 2013 and 2017?
Hint-use information provided on page 135.
2. Do you think CCA will maintain this recent growth rate forever? Justify your answer
and if you disagree then also suggest a new dividend growth rate range. Hint-start by
reading pages 8-9.
3. Suppose the annual dividend growth rate is 5 percent, which will continue into the
foreseeable future. What is the intrinsic value of CCA’s share at 31st December 2018,
if you require an annual return of 10 percent?
4. What was CCA’s share price on 31st December 2018?
5. Should you invest in CCA’s shares based on 3 and 4 above? Why or why not?

Annual Report as in here https://www.ccamatil.com/-/media/Cca/Corporate/Files/Annual-Reports/2018/Annual-Report-2017.ashx
1
Expert's answer
2019-04-25T09:50:15-0400
Dear Sabreen Rehana Nisha, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

Assignment Expert
25.04.19, 18:03

Dear visitor, please use panel for submitting new questions

Betty Ranel
25.04.19, 05:47

Can you please help me answer this question, Suppose the annual dividend growth rate is 5 percent, which will continue into the foreseeable future. What is the intrinsic value of CCA’s share at 31st December 2018, if you require an annual return of 10 percent?

Leave a comment

LATEST TUTORIALS
APPROVED BY CLIENTS