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Addisonjo04 Addisonjo04
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3 years ago
At the end of this year, analysts expect Tyrell Corp. to payout $1.03B in dividends and repurchase $2.64B worth of shares. Assume that all payouts occur annually at the end of the year and that it is currently the beginning of the year. Analysts expect payouts to grow at a constant rate in perpetuity. The shares are currently trading for $40.78. Tyrell has 1.2B shares outstanding and its shareholders require a 10% rate of return. What growth rate is the market pricing into the stock?

▸ 3.2%

▸ 3.3%

▸ 3.4%

▸ 3.5%

▸ 3.6%
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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patyfeitosapatyfeitosa
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3 years ago
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Addisonjo04 Author
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3 years ago
Brilliant
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Yesterday
this is exactly what I needed
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2 hours ago
Thanks
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