The following information relates to Yutter Corporation:
$\begin{array}{lr}&\text { Year } 1\
\text { Net income-year ended } 12 / 31 & \$ 12,500 \
\text { Dividends } & 3,000 \
\text { Return on net operating assets } & 13 \% \
\text { Return on equity } & 15 \% \
\text { Cost of equity } & 12 \%
\end{array}$
-What is the value of Yutter's stock at the end of Year 1 using the dividend discount model assuming that the dividend payout ratio remains constant and Yutter grows at its sustainable equity growth rate?

Question

The following information relates to Yutter Corporation:
 $\begin{array}{lr}&\text { Year } 1\
\text { Net income-year ended } 12 / 31 & \$ 12,500 \
\text { Dividends } & 3,000 \
\text { Return on net operating assets } & 13 \% \
\text { Return on equity } & 15 \% \
\text { Cost of equity } & 12 \%
\end{array}$
-What is the value of Yutter's stock at the end of Year 1 using the dividend discount model assuming that the dividend payout ratio remains constant and Yutter grows at its sustainable equity growth rate?

Quizplus · Accepted Answer

The Answer of The following information relates to Yutter Corporation:
 $\begin{array}{lr}&\text { Year } 1\
\text { Net income-year ended } 12 / 31 & \$ 12,500 \
\text { Dividends } & 3,000 \
\text { Return on net operating assets } & 13 \% \
\text { Return on equity } & 15 \% \
\text { Cost of equity } & 12 \%
\end{array}$
-What is the value of Yutter's stock at the end of Year 1 using the dividend discount model assuming that the dividend payout ratio remains constant and Yutter grows at its sustainable equity growth rate?

The Following Information Relates to Yutter Corporation -What Is the Value of Yutter's Stock at the End