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Avaya 72400X

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Avaya Equinox® Solution with Avaya Aura® Collaboration Applications Support Exam

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Exam Code
72400X
Exam Name
Avaya Equinox® Solution with Avaya Aura® Collaboration Applications Support Exam
No. of Questions
173
Update Period
90 Days


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NEW QUESTION: 1
Section C (4 Mark)
Maxis Ltd reported Earnings Per Share of Rs 2.10 in 1993, on which it paid dividends per share of Rs 0.69.
Earnings are expected to grow 15% a year from 1994 to 1998, during which period the dividend payout ratio is expected to remain unchanged. After 1998, the earnings growth rate is expected to drop to a stable 6%, and the payout ratio is expected to increase to 65% of earnings. The firm has a beta of 1.40 currently, and it is expected to have a beta of 1.10 after 1998. The Risk Free Rate of Return is 6.25%.
What is the value of the stock, using the two-stage dividend discount model?
A. 27.59
B. 35.15
C. 26.75
D. 26.5
Answer: A

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