Question
A company has earnings per share of $3.82 from which it just paid $1.34 in dividends (think payout rate). The firm has an ROA of
A company has earnings per share of $3.82 from which it just paid $1.34 in dividends (think payout rate).
The firm has an ROA of 15% and an ROE of 20%.
The market earns 12% while T-bills earn 4.5%. The stock has a beta of 1.35.
What is the price of the stock?
$82.46
$88.80
$93.18
$94.52
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Mergers, Acquisitions and Other Restructuring Activities
Authors: Donald DePamphilis
8th edition
9780128024539, 128013907, 978-0128013908
