Leront's, Inc. had earnings per share of 5.25. The company announced that it plows back 60% of its earnings into projects returning 12%. If you require a rate of return of 9%, how much are you willing to pay today to purchase one share of Leront's stock?

Answer rating: 100% (QA)

To determine the value of one share of Leronts stock we need to calculate the present value of the f... View the full answer