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1. Space Y Co. has an ROE - .15 and a beta of 1.35. It plans to maintain indefinitely its traditional retention ratio of 0.80.

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1. Space Y Co. has an ROE - .15 and a beta of 1.35. It plans to maintain indefinitely its traditional retention ratio of 0.80. This year's earnings were $3.00 per share. This year's dividend was just pala. The consensus estimate of the coming vear's market return is 10%, and 10 years Treasuries currently offer 2% return. Find the price at which Space Y stock should sell in the market

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