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Question 9 [Soft Break]Question 8.[Soft Break]Assume you obtain the following information about a certain company:

Question 9 [Soft Break]Question 8.20:[Soft Break]Assume you obtain the following information about a certain company:
Total assets $50,000,000[Soft Break]Total equity $25,000,000[Soft Break]Net income: $3,750,000[Soft Break]EPS $5.00 PER SHARE[Soft Break]Dividend payout ratio 40% [Soft Break]Required return 12%
Use the constant-growth DVM to place a value on this company’s stock.

Answer 1. Value of the stock = = $72.67
2. Value of the stock = = $52.67
3. Value of the stock = = $82.67
4. Value of the stock = = $92.67
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