Reedsburg Associates is currently paying a dividend of $0.40 per share on earnings of $4 per share. Its stock is selling for $200 per share. Stocks of similar risk are priced to return 15%. What kind of return on equity could explain investors’ willingness to pay a price equal to 50 times earnings on this stock?
In the United States, laws mandating that companies be responsible for take back of electronic wastes are becoming prevalent at the state level. Today, there are more than 70,000 remanufacturing companies with revenues exceeding $55 billion in annual sales. How does remanufacturing relate to this legislation? How is remanufacturing related to green manufacturing initiatives?
