Question: Wayne Inc s outstanding common stock is currently selling in the

Wayne, Inc.’s outstanding common stock is currently selling in the market for $33. Dividends of $2.30 per share were paid last year, return on equity is 20 percent, and its retention rate is 25 percent.
a. What is the value of the stock to you, given a 15 percent required rate of return?
b. Should you purchase this stock?


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  • CreatedOctober 31, 2014
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