17 dividend payment schedule q1 250 q4 371 q2 327 q5

Info icon This preview shows pages 14–18. Sign up to view the full content.

Required Return: 14.17% Dividend Payment Schedule Q1: $2.50 Q4: $3.71 Q2: $3.27 Q5: $3.25 Q3: $4.34 Q6+: 10% growth \ - Dividend Growth Model 5 5 (1 ) D g P r g × + = - 5 3.25 (1 0.10) 0.1417 0.10 P × + = - 5 $85.73 P \ @ 5 5 0 5 1 (1 ) (1 ) i i i D P P r r = = + + + å 0 2 3 2.50 3.27 4.34 (1 0.1417) (1 0.1417) (1 0.1417) P = + + + + + + 0 $55.67 per share P \ @ 4 5 5 3.71 3.25 85.73 (1 0.1417) (1 0.1417) (1 0.1417) + + + + + + Share Price Shares Oustanding SSTC MCap = × 55.67 45,000 SSTC MCap = × $2,505,122.01 SSTC MCap \ @ Upcoming Events Event 1 – Additional Share Issue Announcement Date: Q3 Amount of Shares: 12,500 in Q3 New Required Return: 15.31% Event 2 – Dividend Policy Change Announcement Date: Q5 Change: Q6+ will be 5% growth New Required Return: 27.47%
Image of page 14

Info icon This preview has intentionally blurred sections. Sign up to view the full version.