15. Roberts Roofing currently earns $4 per share. Its return on equity is 20% and it retains...
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15. Roberts Roofing currently earns $4 per share. Its return on equity is 20% and it retains 50% of its earnings (both figures arc expected to be maintained indefinitely).
Stocks of similar risk are priced to return 15%. What is the intrinsic value of Roberts' stock?
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Investments
ISBN: 9788120321014
6th Edition
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
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