ABC expects to have earnings per share of $11.00 in the coming year and a return on equity of 12.80%. If the firm's dividend payout ratio is 60.20% and its required return is 7.20%, what is the value of the stock today?

Question 5Answer

a.

$152.78

b.

$91.97

c.

$207.92

d.

$522.42

e.

$314.49