The digital electronic quotation system

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The digital electronic quotation system (deqs) corporation pays no cash dividends currently and is not expected to for the next 5 years. its latest EPS was $10, all of which was reinvested in the company. the firm's expected ROE for the next 5 years is 20% per year, and during this time it is expected to continue to reinvest all of its earnings. starting in year 6, the firm's ROE on new investments is expected to fall to 15%, and the company is expected to start paying out 40% of its earnings in cash dividends, which it will continue to do forever after. deqs's market capitalization rate is 15% per year.

Reference no: EM131134330

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