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4. Assume ABC company has current earnings per share of $4.00. It pays 50% as dividend. Its return on equity is 16%. a) calculate its
4. Assume ABC company has current earnings per share of $4.00. It pays 50% as dividend. Its return on equity is 16%. a) calculate its growth rate. b) if the industry benchmark PE ratio is 20 times, what should be ABC's price per share? c) calculate the required rate of return on ABC's stock
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