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 will

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. (a) From the end of year 6 to infinity, the ROE = 12%

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