Joker stock has a sustainable growth rate of 8 percent, ROE of 14 percent, and dividends per share of $ 1.65. If the P/E ratio is 19, what is the value of a share of stock?;Formulas;Sustainable growth rate = ROE x retention ratio;ROE = net income / book equity;Payout ratio = Dividends per share / EPS;Retention ratio = 1 - payout ratio;Sustainable growth rate = ROE x (1 - Payout Ratio);Please show the steps used in the calculations of the answer...especially how you determined the EPS.
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