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Assume the dividend for Take-chan Inc. is forecasted at 80 yen per share for next year. The discount rate is 10%. ROE for Take-chan Inc.

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Assume the dividend for Take-chan Inc. is forecasted at 80 yen per share for next year. The discount rate is 10%. ROE for Take-chan Inc. is 5% and plowback ratio is 65%. Obtain the current price for the stock using DDM (Gordon growth model). If the actual stock price is 1,500 yen per share would you recommend a buy or sell for the stock, briefly explain. Write the equation, define notation, and show all calculations. Calculate up to two decimal places

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