Wayne, Inc.'s outstanding common stock is currently selling in the market for $33. Dividends of $2.84 per share were paid last year, return on equity
Wayne, Inc.'s outstanding common stock is currently selling in the market for $33. Dividends of $2.84 per share were paid last year, return on equity is 32
percent, and its retention rate is 23 percent.
a.What is the value of the stock to you, given a required rate of return of 18 percent?
b.Should you purchase this stock?
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Authors: Ronald Scheinberg
2nd Edition
1138558990, 978-1138558991
