24. Growth Opportunities. Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount
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24. Growth Opportunities. Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expected earnings this year are $4 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of
a. zero. (LO2)
b. .40. (LO2)
c. .80. (LO2)
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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