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A company has a plowback ratio of 0.5 and the required rate of return on their stocks is 13%. Currently their stock has an intrinsic
A company has a plowback ratio of 0.5 and the required rate of return on their stocks is 13%. Currently their stock has an intrinsic value of $43. If the company were to lower their plow back ratio to 0.4, the price of their stock would be expected to rise to $44.
Please show on excel
What are the companys ROE and EPS?
If the company decided to have a dividend payout ratio of 100%, what would be the stock price?
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