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Sisters Corporation expects to earn $5 per share next year. The firm's ROE is 15% and its plowback ratio is 50%. The firm's market capitalization
Sisters Corporation expects to earn $5 per share next year. The firm's ROE is 15% and its plowback ratio is 50%. The firm's market capitalization rate is 10%. Required: a. Calculate the price with the constant dividend growth model. (Do not round intermediate calculations.) b. Calculate the price with no growth. c. What is the present value of its growth opportunities? (Do not round intermediate calculations.) Step by Step Solution
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Essential Personal Finance A Practical Guide For Students
Authors: Lien Luu, Jonquil Lowe, Jason Butler, Tony Byrne
1st Edition
1138692956, 978-1138692954
