Additionally we know the treasury bond rate is 08 and the


We have the following information for the Bob & company. The stock pays a $10 dividend, and it will grow by 100% the first year, 30% the second year. The net profit margin is .10, the ATO is 2 and the leverage ratio is 1.5. The unlevered beta is 1, D/E is 60/40 and the tax rate is .3. Additionally, we know the treasury bond rate is .08 and the ROR of the S&P has been 10%. Moreover, the retention ratio is .45. Derive the stock price of Valverde.

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Business Management: Additionally we know the treasury bond rate is 08 and the
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