Question
You are evaluating the share price of Roses Are Red Wholesale Corp (RARW). RARW's EPS is predicted to be $6 next year, and its ROE
You are evaluating the share price of Roses Are Red Wholesale Corp (RARW). RARW's EPS is predicted to be $6 next year, and its ROE is predicted to be 18%. You estimate RARW's market capitalization rate to be 14%. What is RARW's share price today If it has a plowback ratio of 40%?
| A. | $52.94 | |
| B. | $128.56 | |
| C. | $75.01 | |
| D. | $149.83 |
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
