Laurel enterprises expects earnings next year of 355 per


Laurel Enterprises expects earnings next year of $3.55 per share and has a 40% retention rate, which is plans to keep constant. Its equity cost of capital is 9%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 3.6% per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Laurel enterprises expects earnings next year of 355 per
Reference No:- TGS01395111

Expected delivery within 24 Hours