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Business, 06.11.2019 21:31 kiyahm4739

Royal hills corporation pays 30% of its earnings to stockholders and retains 70% to finance growth. the firm recently paid a $1.90 common stock dividend. investors require a return of 11% on royal hills common stock. if the firm earns a return on equity of 10%, what should be the value of royal hills common stock?
a) $47.50
b) $24.46
c) $67.77
d) $50.83
e) $63.33

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Royal hills corporation pays 30% of its earnings to stockholders and retains 70% to finance growth....
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