Essay
You are trying to value a stable firm that has the following characteristics: current EPS = $5.00; dividend payout ratio = 60%; ROA = 16%; debt/equity ratio = 0.8; interest rate on debt = 11%; required rate of return = 15%; number of shares outstanding = 100,000.What is your best estimate of the firm's value?
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Growth rate (g)= 8%
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