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you decide to analyze sailors stock because you want to make an investment. you have the following information: EPS0 = $1.30 Dividends payout ratio =
you decide to analyze sailors stock because you want to make an investment. you have the following information: EPS0 = $1.30 Dividends payout ratio = 67% cost of equity = 16% Return on equity = 14.84 %equity the stock is currently trading at $8.43 (a) assume no growth, what is the value of the stock? would you consider investing? (b) assuming a constant growth of 2% what is the value of the stock? would you consider investing? (c) using the the original information to estimate growth, what is the value of the stock? would you consider investing? (d) If the ROE was 16 % would the value of the stock be greater, less or the same as (c) above? would
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