Question
Dow Chemical expects earnings per share to be $6 this year, it currently has a plowback ratio of 60% and return on equity is expected
Dow Chemical expects earnings per share to be $6 this year, it currently has a plowback ratio of 60% and return on equity is expected to be 20%. What is the value of the stock if investors require an 18%?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
