Question
ABC paid $1.67 dividend last year. The ROE for next year is 12.5%. An appropriate required return on ABC stock is 11%. If ABC has
ABC paid $1.67 dividend last year. The ROE for next year is 12.5%. An appropriate required return on ABC stock is 11%. If ABC has a plowback ratio of 60%, the dividend in the coming year should be
| A. | $2.69 | |
| B. | $1.80 | |
| C. | $1.94 | |
| D. | $2.50 |
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Public Finance And Public Policy
Authors: Jonathan Gruber
2nd Edition
0716766310, 9780716766315
