You buy a stock which has the following features: price: 500 EPS: 33.3 payout ratio: 25% projected

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You buy a stock which has the following features:

price: €500 EPS: €33.3 payout ratio: 25%

projected EPS growth 15%

What will EPS have to be equal to in year 3 for you to get a 12% return on your investment? What will the share be worth then?

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Related Book For  book-img-for-question

Corporate Finance Theory And Practice

ISBN: 9781119841623

6th Edition

Authors: Pascal Quiry, Yann Le Fur, Pierre Vernimmen

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