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Joker stock has a sustainable growth rate of 9 percent, ROE of 15 percent, and dividends...

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Finance

Joker stock has a sustainable growth rate of 9 percent, ROE of15 percent, and dividends per share of $3.15. If the P/E ratio is19.7, what is the value of a share of stock? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)

Answer & Explanation Solved by verified expert
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Solution As per the information given in the question we have Sustainable growth rate 9 ROE 15 Dividends per share 315 PE ratio 197 Calculation of Dividend Payout ratio We know that Sustainable growth rate ROE 1    See Answer
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Joker stock has a sustainable growth rate of 9 percent, ROE of15 percent, and dividends per share of $3.15. If the P/E ratio is19.7, what is the value of a share of stock? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)

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