What do you estimate the firm current stock price to be

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Question - Laurel Enterprises expects earnings next year of $3.54 per share and has a 40% retention rate, which it 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?

Reference no: EM133273616

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What do you estimate the firm current stock price to be : Laurel Enterprises expects earnings next year of $3.54 per share and has a 40% retention rate, What do you estimate the firm current stock price to be

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