Question
Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per
Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per year.
The firm always pays out 60% of net income as dividends and has 2 million shares of common stock outstanding. The required return is 12%.
What is the value of the stock?
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Value Investing
Authors: Mike Hartley
1st Edition
979-8864443309
