Question
Using the following information: 1. The investors required rate of return is 13% 2. Dividends last year were $2.50 per share. 3. The retention ratio
Using the following information: 1. The investors required rate of return is 13% 2. Dividends last year were $2.50 per share. 3. The retention ratio is 30% 4. The Return on Equity (ROE) is 17% 5. The current value of the stock is $40/share. a. Determine the expected growth rate for dividends b. What is the value of the stock to you? c. Should you buy this stock, and why or why not?
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Microfinance Handbook An Institutional And Financial Perspective
Authors: Joanna Ledgerwood
1st Edition
0821343068, 978-0821343067
