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Internet firm Initech has an ROE of 25% and a plowback ratio of 35%. If Initechs cost of capital is 12.5% and the company just

Internet firm Initech has an ROE of 25% and a plowback ratio of 35%. If Initechs cost of capital is 12.5% and the company just paid a dividend of $1.12 per share, what should the current stock price be? I do not know how to come to the answer below.

Answer: $32.53

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