You believe the Gordon (constant) growth model is appropriate to value the stock of Reliable Electric Corp. The company had an EPS of $2 in 2008. The earnings in the next year without the additional planned investments are expected to remain at $2. The retention ratio is 0.60. The company is expected to earn an ROE of 14 percent on its investments and the required rate of return is 11 percent. Assume that all dividends are paid at the end of the year.
Solution
33.35 is correct.
这是怎么算出来的？我的算法0.8÷（11%-8.4%）=30.77
