Question
A firm had EPS of $5.10 and paid dividends of $2.04 (think payout rate). The firm has a ROA of 12% and a ROE of
A firm had EPS of $5.10 and paid dividends of $2.04 (think payout rate).
The firm has a ROA of 12% and a ROE of 15%.
The market earns 13% and T-bills earn 4%. The stock's beta is 1.05.
What is the price of the stock?
$49.97
$54.06
$55.59
$62.68
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
