If the market capitalization rate is 14 per year what is


In order to evaluate the stock of The Rendell-Vine Corporation, an analyst uses the constant growth discounted dividend model. Expected earnings of $12 per share is assumed, as are an earnings retention rate of 70% and an expected rate of return on future investments of 17% per year. If the market capitalization rate is 14% per year, what is the implied net present value of future investments?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If the market capitalization rate is 14 per year what is
Reference No:- TGS02862775

Expected delivery within 24 Hours