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QUESTION 15 MNO's return on equity is 13% and its long-run retention ratio is 25%. The stock just paid a dividend of $4.25, which is
QUESTION 15 MNO's return on equity is 13% and its long-run retention ratio is 25%. The stock just paid a dividend of $4.25, which is expected to grow at a constant rate forever. If investors require a 20% rate of return for the stock, What would you expect the share price to be two years from today? Round intermediate steps to four decimals. O 27.93 O 26.20 0 25.37 O 27.05 QUESTION 16 In increase in the market risk premium will increase the cost of internal equity, all else being equal. True False
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