Unformatted text preview: 17,250,000 $ Roscovis Corporation has annually paid all preferred dividends. There were no changes in paid-in capital during all of 20X6. The beginning retained earnings was $5,400,000. The ending balance of retained earnings is the result of $3,000,000 in net income and $1,000,000 in total dividends. Determine the maximum price you would pay for a share of common stock in Roscovis if you have the following investment constraints: Maximum Price/Earnings Ratio 15 X Maximum Multiple of Book Value 3 X Minimum Dividend Yield 3%...
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- Spring '11