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@) Over the past few years, a multinational company has retained, on average, 70% of its earnings in the business. The Jture retention rate is

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@) Over the past few years, a multinational company has retained, on average, 70% of its earnings in the business. The Jture retention rate is expected to remain at 70% of earnings, and the long-run earnings growth is expected to be 10%. If the required rate of return is 16% and the most recent dividend was $1.5: A) What is the value of the company's stock? B) If the actual price of the stock in the market is $30, are you going to buy or to sell the stock? C) Does the value of the stock differ if you hold the stock for 2 years instead of holding it forever? Explain using the above data

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