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Constant growth DVM Finance Problem

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Assume you obtain the following information about a certain company:

Total assets $50,000,000
Total equity $25,000,000
Net income $ 3,750,000
EPS $5.00 per share
Dividend payout ratio 40%
Required return 12%

Use the constant-growth DVM to place a value on this company's stock.

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Solution Summary

The solution computes stock price using Constant growth DVM.

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