Question: Using the P / E ratio approach to valuation, calculate the value of a share of stock under the following conditions: The investors required rate

Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions:
The investors required rate of return is 12%
The expected level of esrnings at the end of this year is $4
The firm follows a policy of retaining 30% of its earnings
The return on equity is 15%
Similar shares of stock sell at mulitples of 9.333 times earnings per share

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