Problemmagic the gathering trading company is expected to, Ask an Expert

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Problem:

Magic The Gathering Trading Company is expected to have EPS in the upcoming year of $5. The expected ROE is 10%. An appropriate required return on the stock is 11%.

Required:

Question: If the firm has a plowback ratio of 60%, what should be the price of the stock?

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166344

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