Question
Sisters Corporation expects to earn $ 6 per share next year. The firm s ROE is 1 6 % and its plowback ratio is 6
Sisters Corporation expects to earn $ per share next year. The firms ROE is and its plowback ratio is The firms market capitalization rate is 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.
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Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
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