Question
QUESTION 5 The market consensus is that Analog Electronic Corporation has a return on investment of 9% and the company plans to maintain indefinitely its
QUESTION 5
The market consensus is that Analog Electronic Corporation has a return on investment of 9% and the company plans to maintain indefinitely its traditional retention ratio of 2/3. This year's earnings were $3 per share. The annual dividend was just paid. The consensus estimate of the required return on equity is 16%. The stock price of Analog is (round your answer to two decimal places):
| A. | 13.50 | |
| B. | 20.60 | |
| C. | 20.00 | |
| D. | 10.60 | |
| E. | 10.00 |
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
