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The market consensus is that Analog Electronic Corporation has an ROE = 7% and a beta of 1. It plans to maintain indefinitely its traditional
The market consensus is that Analog Electronic Corporation has an ROE = 7% and a beta of 1. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $5 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 8% and T-bills currently offer a 2% return. Please calculate the intrinsic value of the stock. $61.8272 $41.9882 $52.3333 None of the options are correct Libraries Incorporated has an ROE (return on equity) of 12%. The firm plans to to maintain indefinitely its traditional plowback ratio of 2/3. What is the expected dividend growth rate (g) of Libraries Incorporated? 6% None of the options are correct 8% 7%
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