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ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of 0.20. Its earnings this year will be $3 per share. Investors expect a 12% rate of return on the stock. Assume constant growth in dividends. What would the price of the stock be as of the end of year 3?

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Financial Management, Finance

Category:- Financial Management
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