Question
1. Stockton Solar Co. paid a $2.40 dividend last year and usually increases dividends by 3.5% yearly. If your required return is 8%, what is
1. Stockton Solar Co. paid a $2.40 dividend last year and usually increases dividends by 3.5% yearly. If your required return is 8%, what is the value of this stock?
2. Menard Motors last year had earnings per share of $3.75 and had a stock price of $66. This years expected net profits are $7.6 million. The firm has 1.5 million shares of stock. What is the expected stock price for this year?
2. Odessa Oil Supply pays no dividends. At the end of 2020, the stock price was at $98 and the P/E was 19. The company expects a 14% increase in earnings this year.
What would be your expected stock value for 2021?
I think your supposed to use P/E MODELS OR DIVIDEND MODELS
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