
Ultimate access to all questions.
An analyst gathers the following data to value the shares of a company:
| ROE | 12% |
|---|---|
| Dividend payout ratio | 40% |
| Required rate of return on shares | 15% |
| Current year's dividend per share | $3.60 |
Using the Gordon growth model, the intrinsic value per share is closest to:
A
$36.96.
B
$46.15.
C
$49.49.