Question: Selkirk Inc has an expected profit margin of 10 percent
Selkirk Inc. has an expected profit margin of 10 percent, turnover ratio of 1.8, and a leverage ratio of 0.30. The leading EPS is $2.50 and the firm uses a dividend payout ratio of 35 percent. The required return on firms with Selkirk's risk characteristics is 5 percent. Calculate the expected current stock price of Selkirk.
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