Question
Royals Inc. is expected to have EPS (Earnings per Share) of $6.00 next year.Assume investors expect them to earn an 8% required return on equity
Royals Inc. is expected to have EPS (Earnings per Share) of $6.00 next year.Assume investors expect them to earn an 8% required return on equity and they have no debt.If Royals Inc. always maintains a retention rate of 20% and can earn 10% on new investments forever, what is the current stock price of Royals Inc?
Round you answer to the nearest dollar.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
