Sisters corp expects to earn 8 per share next year the


Sisters Corp expects to earn $8 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. If the firm’s market capitalization rate is 10%.

a) Calculate the price with the constant dividend growth model.

b) Calculate the price with no growth.

c) What is the present value of its growth opportunities?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Sisters corp expects to earn 8 per share next year the
Reference No:- TGS01182764

Expected delivery within 24 Hours