Internet firm initech has an roe of 25 and a plowback ratio


Internet firm Initech has an ROE of 25% and a plowback ratio of 35%. If Initech’s cost of capital is 12.5% and the company just paid a dividend of $1.12 per share, what should the current stock price be?

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Financial Management: Internet firm initech has an roe of 25 and a plowback ratio
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