Question
A firm has a return on equity of 10%, Earnings per share of $2 and is expected to pay $0.5 per share annual dividend. If
A firm has a return on equity of 10%, Earnings per share of $2 and is expected to pay $0.5 per share annual dividend. If you require 12.5% rate of return, how much are you willing to pay for this company's stock now?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
