In: Accounting
(MP Tech just paid an annual dividend of RM 0.20 per share, out of its earnings per share of RM 0.45. Its dividend is expected to double in each of the following three years, after which it will grow at a more modest pace of 3% per year. It has a total number of 50 million shares outstanding. The equity beta of MP Tech is 1.3. The current risk-free rate is 3.2% and the market risk premium is 8.0 %.)(Calculate MP Tech stock worth today using the dividend discount model.)