Question
1. Currently a firm has a benchmark PE of 19.70 and an EPS of 5.25. a 50% payout ratio Earnings are expected to grow 4.0
1. Currently a firm has a benchmark PE of 19.70 and an EPS of 5.25. a 50% payout ratio Earnings are expected to grow 4.0 percent annually. What is the implicit stock return
2. A companys price is expected to be $22 a year from now and currently sells for $21.73. The company pays an annual $3 dividend. What is the required return/discount rate?
3. A company just paid a dividend (D0) of $0.80 per share. The company will increase its dividend by 5% per year. Investor requires a return of 10% (discount rate)
What is the value of the stock?
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Computational Intelligence In Economics And Finance Volume II
Authors: Paul P. Wang, Tzu-Wen Kuo
2007th Edition
3540728201, 978-3540728207
