Question
Ruffles Corp expects to earn $10 per share next year. The firms ROE is 15% and its dividend payout ratio is 60%. If the discount
Ruffles Corp expects to earn $10 per share next year. The firms ROE is 15% and its dividend payout ratio is 60%. If the discount rate is 15%, what is the intrinsic value of the stock?
a)78.77
b)33.33
c)66.67
d)54.99
e)40.00
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Global Finance And The Macroeconomy
Authors: A. Makin
1st Edition
0333736982, 978-0333736982
