[Solved] The market capitalization rate on the sto

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The market capitalization rate on the stock of Aberdeen Wholesale Company is 1 0 % . Its expected ROE is 1 2 % , and

The market capitalization rate on the stock of Aberdeen Wholesale Company is

10 % .

Its expected ROE is

12 %,

and its expected EPS is $

5 .

If the firm's payout ratio is

70 %,

what is the value of the stock assuming a constant growth of dividends? Round your answer to two decimal places.

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