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Assume that a firm has earnings per share of $6.00 (next period), has a retention ratio of (which also means they have a payout ratio
Assume that a firm has earnings per share of $6.00 (next period), has a retention ratio of (which also means they have a payout ratio of . The retention ratio is equal to 1 payout ratio), faces an equity discount rate of 15% and a return on equity of 18%. What is the appropriate estimate of the firm's price?
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