Question: EPS next year is expected to be $5.50 for WIL, Inc. WILs dividend payout ratio is 60% and its dividend growth rate is expected to
EPS next year is expected to be $5.50 for WIL, Inc. WILs dividend payout ratio is 60% and its dividend growth rate is expected to be 7.6%. WILs price-earnings ratio is 16.50
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Compute WILs stock price.
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Compute WILs required rate of return (market capitalization rate).
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What is the value of WILs PVGO?
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Would you recommend that WIL increase, decrease, or leave unchanged its plowback ratio? Explain.
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