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Company forecasts to pay a $16.2 dividend next year, which represents 55% of its earnings. This will provide investors with a 16% expected return (or
Company forecasts to pay a $16.2 dividend next year, which represents 55% of its earnings. This will provide investors with a 16% expected return (or cost of equity =r). The firm's current return on equity is 30%. What is the value of the stock?
$77.73 | ||
$141.33 | ||
$321.11 | ||
$648.00 | ||
$356.4 |
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