Solution:
The most common tool used to measure the valuation of the stock is the ratio of price to earnings. It's easy to access, and the data is readily accessible. The P / E ratio is determined by measuring the price of the stock by the sum of its 12-month trailing profits.
Given,
Dividend of $0.11
Expected stock sales price of $60
RRR 10%
The current price of the stock would be : 60 * 0.10 * 0.11 = 66