What is the fair value for a firm that is expected to realize earnings per share of $3.50 next year, has a retention ratio of
What is the fair value for a firm that is expected to realize earnings per share of $3.50 next year, has a retention ratio of 60%, no growth prospects to speak of, and beta of 0.72 when the risk free rate is 3% and the market risk premium is 5%?
Group of answer choices
a.$20.72
b.$19.25
c.$21.21
d,$19.57
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Authors: Stephen L. Nesbitt
2nd Edition
1119944392, 978-1119944393
