Question
In 2020, General Electric (GE) had an ROE of 9.8%, had earnings per share of $5.5, and had a dividend level of $3.68. What was
In 2020, General Electric (GE) had an ROE of 9.8%, had earnings per share of $5.5, and had a dividend level of $3.68. What was GEs: a. Retention ratio? b. Sustainable growth rate? c. What is the value of GE stock using the perpetual growth model and a required rate of return of 4.5%? d. If the actual stock price of GE in 2020 was $93.05, what you can infer about using sustainable growth rate to value the stock?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
