Essay
For a firm that expects earnings next year of $10.00 per share, has a plowback ratio of 35 percent, a return on equity of 20 percent, and a required return of 15 percent, show the current stock value and next year's expected stock value, assuming that growth is to be constant.
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g = return on equity x plowback ratio
= ...View Answer
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Correct Answer:
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= ...
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