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X-Ray Inc. recently paid its annual dividend of $4.4, and reported an ROE of 7%. The firm pays out 50% of earnings as dividends. Based on your analysis, you estimate that the stock has a required return of 9%. What is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY

X-Ray Inc. recently paid its annual dividend of $4.4, and reported an ROE of 7%. The firm pays out 50% of earnings as dividends. Based on your analysis, you estimate that the stock has a required return of 9%. What is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY

Essentials Of Investments
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
Section: Chapter Questions
Problem 1PS
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X-Ray Inc. recently paid its annual dividend of $4.4, and reported an ROE of 7%. The firm pays out 50% of earnings as dividends. Based on your analysis, you estimate that the stock has a required return of 9%. What is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY
Transcribed Image Text:X-Ray Inc. recently paid its annual dividend of $4.4, and reported an ROE of 7%. The firm pays out 50% of earnings as dividends. Based on your analysis, you estimate that the stock has a required return of 9%. What is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY
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