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Chambers Corporation's ROE is 18%. Their dividend payout is 80%. The last dividend, just paid, was $2.20. If dividends are expected to grow by the
Chambers Corporation's ROE is 18%. Their dividend payout is 80%. The last dividend, just paid, was $2.20. If dividends are expected to grow by the company's internal growth rate indefinitely, what is the current value of the Chambers common stock if its required return is 20%.
a. $12.89
b. $12.56
c. $15.43
d. $13.90
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