Beta Corp has an ROE of 15%; has just paid a dividend of $1.50; pays 10% of its earnings out in dividends, and the appropriate discount rate is 20%. What is the current stock price?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Beta Corp has an ROE of 15%; has just paid
a dividend of $1.50; pays 10% of its earnings
out in dividends, and the appropriate
discount rate is 20%.
What is the current stock price?
Transcribed Image Text:Beta Corp has an ROE of 15%; has just paid a dividend of $1.50; pays 10% of its earnings out in dividends, and the appropriate discount rate is 20%. What is the current stock price?
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