Currently a firm is earning $6 per share. The pay-out ratio is 60% and it will remain same. If the ROE of the firm is 25% and required rate of return on equity is 13%. If the growth rate will settle...

Currently a firm is earning $6 per share. The pay-out ratio is 60% and it will remain same. If the<br>ROE of the firm is 25% and required rate of return on equity is 13%. If the growth rate will settle<br>to 4% after 4-years from now, compute the current price of share.<br>a. 60.91<br>b. 66.18<br>C.<br>50.82<br>d. 79.28<br>

Extracted text: Currently a firm is earning $6 per share. The pay-out ratio is 60% and it will remain same. If the ROE of the firm is 25% and required rate of return on equity is 13%. If the growth rate will settle to 4% after 4-years from now, compute the current price of share. a. 60.91 b. 66.18 C. 50.82 d. 79.28

Jun 08, 2022

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Currently a firm is earning $6 per share. The pay-out ratio is 60% and it will remain same. If the ROE of the firm is 25% and required rate of return on equity is 13%. If the growth rate will settle...

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