Plans to maintain indefinitely traditional retention ratio

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Jansken Co. has an ROE = .12 and a beta of 1.10. It plans to maintain indefinitely its traditional retention ratio of .65. This year's earnings were $2.50 per share. This year's dividend was jsut paid. The consensus estimate of the coming year's market return is .10, and Ti-bills currently offer a .05 return. Find the price at which Jansken should sell using the DDM.

Reference no: EM13934650

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Plans to maintain indefinitely traditional retention ratio : Jansken Co. has an ROE = .12 and a beta of 1.10. It plans to maintain indefinitely its traditional retention ratio of .65. This year's earnings were $2.50 per share. This year's dividend was jsut paid. The consensus estimate of the coming year's mark..
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