Royal Hills Corporation pays 30% of its earnings to stockholders and retains 70% to finance growth. The firm recently paid a $3.20 common stock dividend. Investors require a return of 14% on Royal Hills common stock. If the firm earns a return on equity of 10%, what should be the value of Royal Hills common stock?

Answer rating: 100% (QA)

To calculate the value of Royal Hills Corporations common stock we can use the dividend discount mod... View the full answer