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Old Oct 29, 2009, 11:54 AM
nadeemaziz
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Corporate finance

Star Industries has not been growing since past 20 years because of certain legal hazards. It earns Rs. 15 per share per year and pays it all out to stockholders. The stockholders have alternative, equivalent risk ventures yielding 20 percent per year on average. What is the worth of one share of Star Industries? Assume the company can keep going indefinitely

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Old Nov 17, 2009, 08:23 AM   #2  
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15/.2 =75
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