Rose Hill Trading Company Is Expected to Have EPS in the Upcoming

question 87

Multiple Choice

Rose Hill Trading Company is expected to have EPS in the upcoming year of $6.00.The expected ROE is 18.0%.An appropriate required return on the stock is 14%.If the firm has a plowback ratio of 70%,its intrinsic value should be _________.

• A) $20.93
• B) $69.77
• C) $128.57
• D) $150.00

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