Sisters Corporation expects to earn $9 per share next year. The firm’s ROE is 14% and its plowback ratio is 60%. The fir
Posted: Tue Nov 16, 2021 8:02 am
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?
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?