Question
Problem 3 Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by
Problem 3
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 80% of net income as dividends and has 7 million shares of common stock outstanding. The required return is 9%.
Part 1
What is the current stock price?
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Money, Banking, Financial Markets & Institutions
Authors: Michael Brandl
2nd Edition
1337904821, 9781337904827
