Question
Even Better Products has come out with a new and improved product. As a result, the firm projects anROE of 20%, and it will maintain
Even Better Products has come out with a new and improved product. As a result, the firm projects anROE of 20%, and it will maintain a plowback ratio of 0.40. Itsprojected earningsare $3 per share.Investors expect a 14% rate of return on the stock. Please Show Work.
A). What is thestocks current price?
B). What is the PVGO?
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Forecasting Methods And Applications
Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman
3rd Edition
0471532339, 9780471532330
