Firm ABC, ROE = 25% , Dividend Payout Ratio=60%, next years earning per share (EPS)...
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Firm ABC, ROE = 25% , Dividend Payout Ratio=60%, next years earning per share (EPS) = $6.00, what is the fair value of the stock, assuming that the stock beta is 1.5, market expected return is 15% and the risk-free rate is 5% (use CAPM to calculate the discount rate)?
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