Chambers corporations roe is 18 their dividend payout


Chambers Corporation's ROE is 18%.  Their dividend payout is 80%.  The last dividend, just paid, was $2.20.  If dividends are expected to grow by the company's internal growth rate indefinitely, what is the current value of the Chambers common stock if its required return is 20%.

a. $12.89

b. $12.56

c. $15.43

d. $13.90

 

 

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Finance Basics: Chambers corporations roe is 18 their dividend payout
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