Question: Firm DCF, ROE = 35% , Dividend Payout Ratio=70%, next years earning per share (EPS) = $8.00, assuming that market expected return is 20% and
Firm DCF, ROE = 35% , Dividend Payout Ratio=70%, next years earning per share (EPS) = $8.00, assuming that market expected return is 20% and the risk-free rate is 5%. If increasing DPR will decrease firm value and we can use the constant dividend growth model to value the stock price, the stock beta must be larger than_____ and less than_____
(don't tell me the answer is 2.0 and 2.4) <- it's wrong
(two decimals)
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