I want to answer this Assignment in a scientific and detailed manner
A company has earnings per share of $3.82 from which it just paid $1.34 in dividends (think payout rate). The firm has an ROA of 17% and an ROE of
A company has earnings per share of $3.82 from which it just paid $1.34 in dividends (think payout rate). The firm has an ROA of 17% and an ROE of 22%. The market earns 15% while T-bills earn 4.5%. The stock has a beta of 1.56. What is the price