Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
RVC Industries has 200,000,000 shares outstanding. The firm's expected earnings are $350,000,000. It will payout 30% of its earnings as follows:
RVC Industries has 200,000,000 shares outstanding. The firm's expected earnings are $350,000,000. It will payout 30% of its earnings as follows: 75% in dividends and the remaining 25% will be spent on share repurchases. The firm's earnings growth rate is 7%, and its cost of equity capital is 12%. Based on this information, the firm's price per share is:
