Question
1.A company earned $5 per share in the year that just ended. The company has no more growth opportunities. The company has a 12 percent
1.A company earned $5 per share in the year that just ended. The company has no more growth opportunities. The company has a 12 percent return on equity and a 12 percent cost of equity. What is the stock worth today?
a.What if the company was expected to earn $5.50 next year and then never grow again? Assuming that their return on equity and cost of equity didn't change, what would the stock be worth today?
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
