Question
ART has come out with a new and improved product. As a result, the firm projects an ROE of 26%, and it will maintain a
ART has come out with a new and improved product. As a result, the firm projects an ROE of 26%, and it will maintain a plowback ratio of 0.25. Its earnings this year will be $2.0 per share. Investors expect a 14% rate of return on the stock. What price do you expect ART shares to sell for in 4 years?
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
9th edition
78034698, 978-0077502287, 77502280, 978-0078034695
