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Valuing Common Stocks Example - 5 Our company forecasts to pay a OMR 8.33 dividend next year, which represents 100% of its earnings. This will
Valuing Common Stocks Example - 5 Our company forecasts to pay a OMR 8.33 dividend next year, which represents 100% of its earnings. This will provide investors with a 15% expected return. Instead, we decide to plow back 40% of the earnings at the firm's current return on equity of 25%. What is the value of the stock before and after the plowback decision
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