What is the stock price using the dividend discount model

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Reference no: EM13906199

Using the following information:                                                              

1. The investors required rate of return is 15%                                  

2. The expected level of earnings at the end of this year (E1) of $5.00    

3. The retention ratio is 65%                                                                       

4. The Return on Equity (ROE) is 13%                                                      

a. Determine the expected growth rate for dividends.

b. Determine the price earnings ratio.?

c. What is the stock price using the P/E ratio valuation method?

d. What is the stock price using the dividend discount model?

Reference no: EM13906199

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