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a company's stock price is $42, it pays out all earnings as dividends, so the simple dividend discount model is appropriate. assume the discount factor
a company's stock price is $42, it pays out all earnings as dividends, so the simple dividend discount model is appropriate. assume the discount factor the market applies to the company's expected dividend is 8%. If ROE is 16%, what is the book value per share? Answer is 21. Please show all work how to get to the answer.
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