Find correct answer to question below: Imagine a stock that has an...
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Imagine a stock that has an expected EPS of $5.50 for the next year. This firm plans to distribute 60% of its earnings as dividends to its shareholders. The cost of equity is 12% pa and the current stock price is $62.50 per share. Under these circumstances, what is the return on retained earnings (RORE) for our firm? 16.30%15.80%15.30%14.80%16.80%
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