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Business, 27.04.2021 14:30 michealjholley6211

Question 4 Suppose that the consensus forecast of security analysts of your favorite company is that earnings next year will be $5.00 per share. The company plows back 50% of its earnings and if the Chief Financial Officer (CFO) estimates that the company's return on equity (ROE) is 16%. Assuming the plowback ratio and the ROE are expected to remain constant forever: If you believe that the company's required rate of return is 10%, what is your estimate of the price of the company's stock

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Question 4 Suppose that the consensus forecast of security analysts of your favorite company is that...
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