Question

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?​

Answer 1

Answer:

its a good and better for others