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Company X Stock has a current price of $ 3 0 , a current dividend per share of $ 2 , and an estimated return

Company X Stock has a current price of $30, a current dividend per share of $2, and an estimated return on equity investment of 25%.60% of the company earnings are paid to shareholders as cash dividends. A) To answer this question assume that company X is growing at a constant rate indefinetely. Company Y in the same industry is similar to Company X in many aspects. A few minutes ago, Company Y's current earnings were $40,000, it has 10,000 outstanding shares. Use the avaialable infomration to estimate Company Y's stock price. DPS =2.4 for A) How do we find Stock price knowing they are in the same industry?

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