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Business, 05.05.2020 18:46 palcochran1313

Exxon-Mobil Corp. has a dividend payout ratio of 60 percent, expects earnings per share of $6 next year (EPS1=$6), currently has a stock price of $72, an ROE of 13%, and a growth rate of 6.2%. Exxon-Mobil stock has a beta of 0.8, as computed by a leading investment service. The present risk-free rate is 3.0 percent, and the expected return on the stock market is 11.0 percent. Based on use of the DCF approach what is Exxon-Mobil s cost of retained earnings?

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