Question
7.27 Growth Opportunities. Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expected earnings this
7.27 Growth Opportunities. Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expected earnings this year are $3 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of
a. zero
b. 0.4
c.0.8
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
