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Rose Hill Trading Company is expected to have earnings per share in the upcoming year of $8. The expected ROE is 18%. An appropriate required
Rose Hill Trading Company is expected to have earnings per share in the upcoming year of $8. The expected ROE is 18%. An appropriate required return on the stock is 14%. The firm has a dividend pay-out ratio of 40%. Required: (4*2.5 = 10pts) A. Calculate the growth rate of the firm.B. What is the intrinsic value of the firm? C. What is the present value of its growth opportunities? D. Calculate the expected dollar dividend payment of the firm for the coming 5 consecutive years.
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