Multiple Choice
High Tech Chip Company is expected to have EPS in the coming year of $2.50.The expected ROE is 14%.An appropriate required return on the stock is 11%.If the firm has a dividend payout ratio of 40%,the intrinsic value of the stock should be
A) $22.73
B) $27.50
C) $28.57
D) $38.46
E) none of these
Correct Answer:
Verified
Correct Answer:
Verified
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