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4. Our company forecasts to pay a $14.24 dividend next year, which represents 65% of its earnings. This will provide investors with a 16% expected
4. Our company forecasts to pay a $14.24 dividend next year, which represents 65% of its earnings. This will provide investors with a 16% expected return (or cost of equity =r). The firm's current return on equity is 30%. What is the value of the stock?
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