Question
2. You have the following information on Yahoo companys stocks (10 points) Growth first two years 24% Growth years thereafter 6% Beta 1.7 Risk free
2. You have the following information on Yahoo companys stocks (10 points) Growth first two years 24% Growth years thereafter 6% Beta 1.7 Risk free rate 7% Expected market return 12% Earnings per share $8 Dividends now $3
I. Calculate P/E ratio using the information given above
II. If the market price is $42, would you recommend investing in this stock?
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Handbook Of The Fundamentals Of Financial Decision Making
Authors: Leonard C MacLean, William T Ziemba
1st Edition
9814417343, 978-9814417341
