Question: (4 Task 3: Marks) Casio Travels forecasts to pay a OMR (last two digits of your student number) dividend next year, which represents 100% of

 (4 Task 3: Marks) Casio Travels forecasts to pay a OMR

(4 Task 3: Marks) Casio Travels forecasts to pay a OMR (last two digits of your student number) dividend next year, which represents 100% of its earnings. This will provide investors with a 12% expected return. Instead, we decide to plow back 35% of the earnings at the firm's return on equity of 18%. What is the value of the stock before and after the plowback decision? Compare and comment on the results

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