Chapter 13 The Cost of Capital

divides the dividend paid of $4 million by the nominal value of the issued share capital rather than the number of ordinary shares in issue. 5. C Share price = $60m/20m = $3. Dividend per share = [($15m x 1·2) x 0·3]/20m = $0.27. Expected return = (27/300) + 0·04 = 13%. Option A. uses the dividend growth formula incorrectly ................
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