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Other Fields Homework Help Finance Topic started by: Yeeeee89 on Jul 7, 2019



Title: Praetorian Industries will pay a dividend of $2.50 per share this year and has an an equity cost of ...
Post by: Yeeeee89 on Jul 7, 2019
Praetorian Industries will pay a dividend of $2.50 per share this year and has an an equity cost of capital of 8%. Praetorian's stock is currently trading at $84 per share. By comparing Praetorian with similar firms, an investor expects that its dividends will grow by up to 5% per year. What is the best next step that the investor should take regarding Praetorian's stock?

▸ Short Praetorian's stock.

▸ Revise Praetorian's equity cost of capital.

▸ Sell any Praetorian stock that she owns.

▸ Revise her estimate of Praetorian's dividend growth.


Title: Praetorian Industries will pay a dividend of $2.50 per share this year and has an an equity cost of ...
Post by: Steve Trainer on Jul 7, 2019
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Title: Re: Praetorian Industries will pay a dividend of $2.50 per share this year and has an an equity cost ...
Post by: Luqi Jia on Aug 12, 2020
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