Business, 23.08.2020 14:01 CarleySamuel

ART has come out with a new and improved product. As a result, the firm projects an ROE of 26%, and it will maintain a plowback ratio of 0.20. Its earnings this year will be $2.5 per share. Investors expect a 14% rate of return on the stock. What price do you expect ART shares to sell for in 4 years? A. $26.46
B. $39.69
C. $27.84
D. $30.34

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ART has come out with a new and improved product. As a result, the firm projects an ROE of 26%, and...