Question
The expected earnings per share (EPS) is $2.00 next year, and the dividend payout ratio is 71.00%. If the stock's required return is 12.51%, and
The expected earnings per share (EPS) is $2.00 next year, and the dividend payout ratio is 71.00%. If the stock's required return is 12.51%, and its return on equity (ROE) is 19.00%, then what is the current stock price?
a.$17.65
b.$5.43
c.$25.29
d.$20.29
e.$10.14
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
5th edition
1111527369, 978-1111527365
