Question
Taipan Trading Company is a mature company that had an EPS of $6 last year. The expected ROE is 14%. An appropriate required return on
Taipan Trading Company is a mature company that had an EPS of $6 last year. The expected ROE is 14%. An appropriate required return on the stock is 12%. If the firm has a plowback ratio of 80% and constantly grows its dividends at its sustainable rate, the value of the no growth component of this firm is _________.
| $67.04 |
| $834.00 |
| $55.60 |
| $750.00 |
| None of the other answers is correct |
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
