Question: Consider the information given below. existing ROE = 20%; this will continue for the next 6 years. rs = 12% Bo = $18 payout ratio

Consider the information given below. existing ROE = 20%; this willcontinue for the next 6 years. rs = 12% Bo = $18

Consider the information given below. existing ROE = 20%; this will continue for the next 6 years. rs = 12% Bo = $18 payout ratio = 30% Using the residual income model, calculate the stock share value for each of the following possibilities. (b) From the end of year 6 to infinity, the continuing residual income is a perpetuity

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