Show the current stock value and expected stock value

Reference no: EM131975324

Question: For a firm that expects earnings next year of $10.00 per share, has a plowback ratio of 35 percent, a return on equity of 20 percent, and a required return of 15 percent, show the current stock value and next year's expected stock value, assuming that growth is to be constant.

Reference no: EM131975324

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