Sisters Corporation expects to earn $9 per share next year. The firm’s ROE is 14% and its plowback ratio is 60%. The fir

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Sisters Corporation expects to earn $9 per share next year. The firm’s ROE is 14% and its plowback ratio is 60%. The fir

Post by answerhappygod »

Sisters Corporation expects to earn $9 per share next year. The
firm’s ROE is 14% and its plowback ratio is 60%. The firm’s market
capitalization rate is 10%.
a. Calculate the price with the constant
dividend growth model.
b. Calculate the price with no growth.
c. What is the present value of its growth
opportunities?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”