Question
1. You just bought a stock with a P/E ratio of 8. This year it has earnings per share (EPS) of $4. Its next dividend
1. You just bought a stock with a P/E ratio of 8. This year it has earnings per share (EPS) of $4. Its next dividend is due in one year, when you expect EPS of $4.50 and a payout ratio of 10%. If you sell it for $35 right after receiving the dividend, what will your return (in %) be?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
