An investor gathers the following information about a company: $5.00 Current earnings per share Current dividend per share Required rate of return $3.00 15.0% Return on equity (ROE) 17.5% What is the value of the company's stock?

An investor gathers the following information about a company: $5.00 Current earnings per share Current dividend per share Required rate of return $3.00 15.0% Return on equity (ROE) 17.5% What is the value of the company's stock?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 6QFR

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Question

An investor gathers the following information about a company:
$5.00
$3.00
15.0%
17.5%
Current earnings per share
Current dividend per share
Required rate of return
Return on equity (ROE)
What is the value of the company's stock?

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