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Suppose a firm reinvests 4 0 % of its net income every year and the return on reinvestment is same as ROE, 1 5 %

Suppose a firm reinvests $40 %$ of its net income every year and the return on reinvestment is same as ROE, $15 % .$ The firms net income last year was $ $4, 000, 000 .$ If the stock price is currently $ $120$ and there are $240, 000$ shares outstanding, what would be the required return?

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Question

Suppose a firm reinvests 4 0 % of its net income every year and the return on reinvestment is same as ROE, 1 5 %

Suppose a firm reinvests 40% of its net income every year and the return on reinvestment is same as ROE, 15%. The firms net income last year was $4,000,000. If the stock price is currently $120 and there are 240,000 shares outstanding, what would be the required return?

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Suppose a firm reinvests $40 %$ of its net income every year and the return on reinvestment is same as ROE, $15 % .$ The firms net income last year was $ $4, 000, 000 .$ If the stock price is currently $ $120$ and there are $240, 000$ shares outstanding, what would be the required return?