SlideShare a Scribd company logo
1 of 1
Download to read offline
Laurel Enterprises expects earnings next year of $4.13 per share and has a 30% retention rate,
which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return
on new investment. Its earnings are expected to grow forever at a rate of 3.3% per year. If its next
dividend is due in one year, what do you estimate the firm's current stock price to be? The current
stock price will be $ (Round to the nearest cent.)

More Related Content

More from kashishkochhar5

Review and analyze the following RFP below at httpswww.pdf
Review and analyze the following RFP below at   httpswww.pdfReview and analyze the following RFP below at   httpswww.pdf
Review and analyze the following RFP below at httpswww.pdf
kashishkochhar5
 
On January 1 Monty Corp had 55400 shares of nopar common.pdf
On January 1 Monty Corp had 55400 shares of nopar common.pdfOn January 1 Monty Corp had 55400 shares of nopar common.pdf
On January 1 Monty Corp had 55400 shares of nopar common.pdf
kashishkochhar5
 
2 Given the following documents 6 D1 bsbj use term id D2 .pdf
2 Given the following documents 6 D1 bsbj use term id D2 .pdf2 Given the following documents 6 D1 bsbj use term id D2 .pdf
2 Given the following documents 6 D1 bsbj use term id D2 .pdf
kashishkochhar5
 
Identify secondary data sources for the following be specif.pdf
Identify secondary data sources for the following be specif.pdfIdentify secondary data sources for the following be specif.pdf
Identify secondary data sources for the following be specif.pdf
kashishkochhar5
 
Kapan Vakas Lenovoda Kresel Strateji Dnyann en iyi kiise.pdf
Kapan Vakas Lenovoda Kresel Strateji  Dnyann en iyi kiise.pdfKapan Vakas Lenovoda Kresel Strateji  Dnyann en iyi kiise.pdf
Kapan Vakas Lenovoda Kresel Strateji Dnyann en iyi kiise.pdf
kashishkochhar5
 

More from kashishkochhar5 (15)

Review and analyze the following RFP below at httpswww.pdf
Review and analyze the following RFP below at   httpswww.pdfReview and analyze the following RFP below at   httpswww.pdf
Review and analyze the following RFP below at httpswww.pdf
 
please use c 146 Temperature Conversions Write a tempera.pdf
please use c 146 Temperature Conversions Write a tempera.pdfplease use c 146 Temperature Conversions Write a tempera.pdf
please use c 146 Temperature Conversions Write a tempera.pdf
 
On January 1 Monty Corp had 55400 shares of nopar common.pdf
On January 1 Monty Corp had 55400 shares of nopar common.pdfOn January 1 Monty Corp had 55400 shares of nopar common.pdf
On January 1 Monty Corp had 55400 shares of nopar common.pdf
 
Mitentipta 16 Application of Time Value of Money skisis Gav.pdf
Mitentipta 16 Application of Time Value of Money skisis Gav.pdfMitentipta 16 Application of Time Value of Money skisis Gav.pdf
Mitentipta 16 Application of Time Value of Money skisis Gav.pdf
 
Many documents use a specific format for a persons name Wr.pdf
Many documents use a specific format for a persons name Wr.pdfMany documents use a specific format for a persons name Wr.pdf
Many documents use a specific format for a persons name Wr.pdf
 
2 Given the following documents 6 D1 bsbj use term id D2 .pdf
2 Given the following documents 6 D1 bsbj use term id D2 .pdf2 Given the following documents 6 D1 bsbj use term id D2 .pdf
2 Given the following documents 6 D1 bsbj use term id D2 .pdf
 
Let X1Xn be a random sample from a Binomial1 populatio.pdf
Let X1Xn be a random sample from a Binomial1 populatio.pdfLet X1Xn be a random sample from a Binomial1 populatio.pdf
Let X1Xn be a random sample from a Binomial1 populatio.pdf
 
MyPillowcom usa publicidad televisiva y deseaba ver si los .pdf
MyPillowcom usa publicidad televisiva y deseaba ver si los .pdfMyPillowcom usa publicidad televisiva y deseaba ver si los .pdf
MyPillowcom usa publicidad televisiva y deseaba ver si los .pdf
 
Identify secondary data sources for the following be specif.pdf
Identify secondary data sources for the following be specif.pdfIdentify secondary data sources for the following be specif.pdf
Identify secondary data sources for the following be specif.pdf
 
Kapan Vakas Lenovoda Kresel Strateji Dnyann en iyi kiise.pdf
Kapan Vakas Lenovoda Kresel Strateji  Dnyann en iyi kiise.pdfKapan Vakas Lenovoda Kresel Strateji  Dnyann en iyi kiise.pdf
Kapan Vakas Lenovoda Kresel Strateji Dnyann en iyi kiise.pdf
 
Income statement Use the data from the following financial .pdf
Income statement Use the data from the following financial .pdfIncome statement Use the data from the following financial .pdf
Income statement Use the data from the following financial .pdf
 
ABCDE Inc has three divisions AB CD and E All fixed cos.pdf
ABCDE Inc has three divisions AB CD and E All fixed cos.pdfABCDE Inc has three divisions AB CD and E All fixed cos.pdf
ABCDE Inc has three divisions AB CD and E All fixed cos.pdf
 
I have come code already but I cant quite get the output rig.pdf
I have come code already but I cant quite get the output rig.pdfI have come code already but I cant quite get the output rig.pdf
I have come code already but I cant quite get the output rig.pdf
 
Archeologists have studied sizes of Egyptian skulls in an at.pdf
Archeologists have studied sizes of Egyptian skulls in an at.pdfArcheologists have studied sizes of Egyptian skulls in an at.pdf
Archeologists have studied sizes of Egyptian skulls in an at.pdf
 
A3 Benjamin a 21yearold male is brought to the emergency.pdf
A3 Benjamin a 21yearold male is brought to the emergency.pdfA3 Benjamin a 21yearold male is brought to the emergency.pdf
A3 Benjamin a 21yearold male is brought to the emergency.pdf
 

Recently uploaded

Salient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functionsSalient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functions
KarakKing
 

Recently uploaded (20)

Food safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdfFood safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdf
 
Philosophy of china and it's charactistics
Philosophy of china and it's charactisticsPhilosophy of china and it's charactistics
Philosophy of china and it's charactistics
 
On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
Google Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptxGoogle Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptx
 
ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)
 
On_Translating_a_Tamil_Poem_by_A_K_Ramanujan.pptx
On_Translating_a_Tamil_Poem_by_A_K_Ramanujan.pptxOn_Translating_a_Tamil_Poem_by_A_K_Ramanujan.pptx
On_Translating_a_Tamil_Poem_by_A_K_Ramanujan.pptx
 
Interdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxInterdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptx
 
Salient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functionsSalient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functions
 
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdfUnit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
 
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
How to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSHow to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POS
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
21st_Century_Skills_Framework_Final_Presentation_2.pptx
21st_Century_Skills_Framework_Final_Presentation_2.pptx21st_Century_Skills_Framework_Final_Presentation_2.pptx
21st_Century_Skills_Framework_Final_Presentation_2.pptx
 
Basic Intentional Injuries Health Education
Basic Intentional Injuries Health EducationBasic Intentional Injuries Health Education
Basic Intentional Injuries Health Education
 
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
 
Tatlong Kwento ni Lola basyang-1.pdf arts
Tatlong Kwento ni Lola basyang-1.pdf artsTatlong Kwento ni Lola basyang-1.pdf arts
Tatlong Kwento ni Lola basyang-1.pdf arts
 
Exploring_the_Narrative_Style_of_Amitav_Ghoshs_Gun_Island.pptx
Exploring_the_Narrative_Style_of_Amitav_Ghoshs_Gun_Island.pptxExploring_the_Narrative_Style_of_Amitav_Ghoshs_Gun_Island.pptx
Exploring_the_Narrative_Style_of_Amitav_Ghoshs_Gun_Island.pptx
 

Laurel Enterprises expects earnings next year of 413 per s.pdf

  • 1. Laurel Enterprises expects earnings next year of $4.13 per share and has a 30% retention rate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 3.3% per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be? The current stock price will be $ (Round to the nearest cent.)