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Laurel Enterprises expects earnings next year of $ 4.09 per share and has a 30% retentionrate, which it plans to keep constant. Its equity cost
Laurel Enterprises expects earnings next year of $4.09 per share and has a 30% retentionrate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 3.3% per year. If its next dividend is due in oneyear, what do you estimate thefirm's current stock price tobe?
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