Question
1. ABC, Inc. just paid a dividend of $2. ABC expects dividends to grow at 10%. The return on stocks like ABC, Inc. is typically
1. ABC, Inc. just paid a dividend of $2. ABC expects dividends to grow at 10%. The return on stocks like ABC, Inc. is typically around 12%. What is the most you would pay for a share of ABC stock?
2. Home Depot stock is currently selling for $75 per share. Next year's dividend is expected to be $1.56; next year's earnings per share are expected to be $4.16. Home Depot's P/E ratio is
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
