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parts c-e Dishwasher's Delights plows back 69.50% of its earnings to take on projects that earn the firm a 15.50% rate of return. Dishwasher's stockholders
parts c-e
Dishwasher's Delights plows back 69.50% of its earnings to take on projects that earn the firm a 15.50% rate of return. Dishwasher's stockholders require a return of 12.00% return on their common stock. Earnings per share are expected to be $4.00 next year. c. What is the intrinsic value of Dishwasher's stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. If Dishwasher's management chose to pay out all earnings as dividends, what would be the intrinsic value of its stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value e. What is the present value of growth opportunities for Dishwasher's Delights (Do not round intermediate calculations. Round your answer to 2 decimal places.) Step by Step Solution
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