Rustic Corporation Has Earnings Per Share of $2

question 56

Essay

Rustic Corporation has earnings per share of $2.50 and paid a dividend of $1.75 per share.The firm's ROE and P/E are 15% and 20, respectively.Calculate the following:
a)The current share price
b)The required rate of return
c)The dividend yield

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Definitions:

Stand-alone Stores

Retail outlets located independently rather than within a mall or shopping center, often offering a specific brand or product range.

Specialty Goods

Specialty goods are high-value, often luxury items that are purchased infrequently and for which consumers are willing to invest significant time and effort in the buying process.

Convenience Goods

Consumer items that are widely available and can be bought frequently and with minimal effort, such as everyday household items.

Personal Computers

Electronic devices designed for individual use, capable of executing a set of instructions or software.