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Company X generally retains 40% of its net income for reinvestment. The companys ROE is 18%. The company has just paid a dividend of $2.00.
Company X generally retains 40% of its net income for reinvestment. The companys ROE is 18%. The company has just paid a dividend of $2.00. Investors required rate of return on this stock is 15%. What is the value of this stock if dividends are expected to continue growing indefinitely at the companys internal growth rate? Group of answer choices $20.54 $25.51 $27.49 $28.10
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