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
Correct Answer:
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