Question: Malfoy Corporation paid a $3 dividend per share this year. Its total earnings per share were
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Question:
Question:
Malfoy Corporation paid a $3 dividend per share this year. Its total earnings per share were $6. Malfoy's book equity is $60 million. There are 1 million shares outstanding and the discount rate for Malfoy stock is 12%.
A. What is the growth rate of Malfoy?
B. What is the price of a share of Malfoy stock if you assume that the numbers above are representative of the foreseeable future?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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