The firm is in stable growth growing 3 a year and has a


Dylan Inc. is an all equity funded, publicly traded firm that trades at a price to book ratio of 1.40. The firm is in stable growth, growing 3% a year and has a cost of equity of 18%. Estimate the return on equity for Dylan Inc., assuming that the firm is correctly priced at the moment.

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Finance Basics: The firm is in stable growth growing 3 a year and has a
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