Royal Hills Corporation pays 30% of its earnings to stockholders and retains 70% to finance growth. The
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Royal Hills Corporation pays 30% of its earnings to stockholders and retains 70% to finance growth. The firm recently paid a $3.20 common stock dividend. Investors require a return of 14% on Royal Hills common stock. If the firm earns a return on equity of 10%, what should be the value of Royal Hills common stock?
Related Book For
Financial Management Theory & Practice
ISBN: 9780324652178
12th Edition
Authors: Eugene BrighamMichael Ehrhardt
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