Assume you obtain the following information about a certain company: Total assets ...... $50,000,000 Total equity ......

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Assume you obtain the following information about a certain company:

Total assets ...... $50,000,000

Total equity ...... $25,000,000

Net income ....... $3,750,000

EPS ........$5.00 per share

Dividend payout ratio . 40%

Required return .... 12%

Use the constant-growth DVM to place a value on this company’s stock.

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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Apr 28, 2015 03:42 AM

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Assume you obtain the following information about a certain company: Total assets ...... $50,000,000 Total equity ......

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In order to value this company you first need to determine the firm...View the full answer

Fundamentals of Investing

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