A company has earnings per share of 382 from which it just


A company has earnings per share of $3.82 from which it just paid $1.34 in dividends (think payout rate).

The firm has an ROA of 15% and an ROE of 20%.

The market earns 12% while T-bills earn 4.5%. The stock has a beta of 1.35.

What is the price of the stock?

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Finance Basics: A company has earnings per share of 382 from which it just
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