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A share of stock of Rose Inc. is now selling for $75. Rose Inc. is expected to have EPS in the upcoming year of $7.
A share of stock of Rose Inc. is now selling for $75. Rose Inc. is expected to have EPS in the upcoming year of $7. An appropriate required return on the stock is 12%. If the firm has a plowback ratio of 55%, what is the implied value of the ROE on future investment opportunities?
A. | 14.2% | |
B. | 9.3% | |
C. | 15.3% | |
D. | 13.2% |
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