The EPS of Mass Energy Co. was $7.2 last year. It maintains a dividend payout ratio of 40%. Assume that the ROE of Mass Energy Co. is 16% and cost of equity is 13.5%. What price do you expect shares of Mass Energy Co. to sell for in 5 years? Do not round your intermediate calculations.

Answer rating: 100% (QA)

1 Calculate the growth rate Growth rate ROE Dividend payou... View the full answer