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IMM currently retains 40% of its earnings ($4 a share this year). It earns an ROE of 20%. Assuming a required rate of return of
IMM currently retains 40% of its earnings ($4 a share this year). It earns an ROE of 20%. Assuming a required rate of return of 15%, how much would you pay for the IMM stock?
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
