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Title: Wyatt's current stock price is closest to: Post by: johnpaech on Nov 19, 2017 Wyatt's current stock price is closest to:
A) $51.23 B) $54.00 C) $49.11 D) $61.38 Title: Re: Wyatt's current stock price is closest to: Post by: deusmaroto on Nov 19, 2017 C
Explanation: C) Retention ratioYear 1 = = .75 × 16% return = 12% growth rate EPSYear 1 = $4.00 (1.12) = $4.48 Retention ratioYear 2 = = .776786 × 16% return = 12.4286% growth rate EPSYear 2 = $4.48 (1.124286) = $5.0368 Retention ratioYear 3 = .40% × 16% return = 6.4% growth rate P0 = + = $49.11 |