question archive You study a share that is expected with SEK 30 (in today's money value) in dividends per share in all future

You study a share that is expected with SEK 30 (in today's money value) in dividends per share in all future

Subject:FinancePrice:2.86 Bought3

You study a share that is expected with SEK 30 (in today's money value) in dividends per share in all future. The expected interest rate in the future is 5 percent. What is the reasonable share price?

a) Approx. 28.50 SEK

b) 150 SEK

c) 600 SEK

d) 31.50 SEK

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Dividend per share = SEK 30

Expected interest rate = 0.05

Reasonable share price = Dividend per share / Expected interest rate

= 30 / 0.05

= SEK 600

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