Question
RVC Industries has 200,000,000 shares outstanding.The firm's expected earnings are $350,000,000. It will payout 30% of its earnings as follows: 75% in dividends and the
RVC Industries has 200,000,000 shares outstanding.The firm's expected earnings are $350,000,000. It will payout 30% of its earnings as follows: 75% in dividends and the remaining 25% will be spent on share repurchases.The firm's earnings growth rate is 7%, and its cost of equity capital is 12%.Based on this information, the firm's price per share is:
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
