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OAB company intends to distribute dividends to its stockholders amounting to BD12 per share next year. The amount represents 15% return of investors money. However,
- OAB company intends to distribute dividends to its stockholders amounting to BD12 per share next year. The amount represents 15% return of investors money. However, the company as part of its strategy, plow 40% of its earnings back to the companys return on equity of 25%. Determine the value of the stock before plow-back and the value after plow-back.
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