Question
A company is expected to have earnings per share of $3.41 this year and to pay a dividend of $2.92. The discount rate for the
A company is expected to have earnings per share of $3.41 this year and to pay a dividend of $2.92. The discount rate for the stock is 13.1% and the rate of return on reinvested earnings is 20.9%. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Enter your response below rounded to 2 DECIMAL PLACES.
: 30.01%
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Using 3 as the growth rate, what would be the price of the stock?
Enter your response below rounded to 2 DECIMAL PLACES.
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Theoretical Foundations For Quantitative Finance
Authors: Luca Spadafora, Gennady P Berman
1st Edition
9813202475, 978-9813202474
