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%, its intrinsic value assuming it constantly grows dividends at its sustainable rate should be _________.
| $22.35 |
| $69.77 |
| $834.00 |
| $750.00 |
| None of the other answers is correct |
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
