Assuming bbbs cost of equity is 195 what is the stocks


Gun manufacturer Bloodbath & Beyond expects earnings of $5 million on $20 million of equity this year, paying 60% of its earnings as dividends. It expects no changes in its ROE or dividend payout ratio in the near future. If the current dividends are $3.00 a share. Assuming BBB’s cost of equity is 19.5%, what is the stock’s intrinsic value?

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Financial Management: Assuming bbbs cost of equity is 195 what is the stocks
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