Next year’s expected firm earnings are $4,000, shares outstanding 1000, ROE=14%capitalization rate 10%, b(plowback ratio)=10% and assuming constant growth dividends. Calculate Po and Po in a no-growth case (b=0)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter7: Common Stock: Characteristics, Valuation, And Issuance
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Next year’s expected firm earnings are $4,000, shares outstanding 1000, ROE=14%capitalization rate 10%, b(plowback ratio)=10% and assuming constant growth dividends.

Calculate Po and Po in a no-growth case (b=0)

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