Question
Aardvark Engineering has an expected return on equity of 11%, a retention rate of 45%, and a required rate of return of 16%. Recent earnings
Aardvark Engineering has an expected return on equity of 11%, a retention rate of 45%, and a required rate of return of 16%. Recent earnings were $1.85 per share and the growth rate is expected to be constant for the foreseeable future. The price of Aardvark's common stock is closest to:
a. $9.68
b. $9.04
c. $8.95
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
