Question
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?
| $648.00 | ||
| $77.73 | ||
| $321.11 | ||
| $356.4 | ||
| $141.33 |
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
