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Westin Corporation common stock recently paid a dividend of $2.10. The firm typically pays out 50% of its earnings as dividends and retains the rest
Westin Corporation common stock recently paid a dividend of $2.10. The firm typically pays out 50% of its earnings as dividends and retains the rest for investment in the firm. Westin has a return on equity of 15 percent. If investors require a return of 12 percent, what is the intrinsic value of the firm's common stock? Assume dividends will grow at a constant rate.
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