Joker stock has a sustainable growth rate of 10 percent, ROE of 16 percent, and dividends per share of $3.20. If the PE ratio is 15.7, what is the value of a share of stock? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Stock value per share

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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Joker stock has a sustainable growth rate of 10 percent, ROE of 16 percent, and dividends per share of $3.20. If the PE ratio is 15.7,
what is the value of a share of stock?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Stock value per share
Transcribed Image Text:Joker stock has a sustainable growth rate of 10 percent, ROE of 16 percent, and dividends per share of $3.20. If the PE ratio is 15.7, what is the value of a share of stock? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Stock value per share
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