Question: NHL Inc. ' s current return on equity ( ROE ) is 2 0 % , its current book equity per share is $ 5

NHL Inc.'s current return on equity (ROE) is 20%, its current book equity per share is $50, and it pays out half of its earnings as dividends. Both the ROE and payout ratio will stay constant for the next two years. After year 2, competition will force ROE down to 8%, and NHL will increase its payout ratio to 75%. The market capitalization rate or expected return for NHL's stock is 10%. What is NHL's stock price today?
 NHL Inc.'s current return on equity (ROE) is 20%, its current

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