Question
A. Currently, a firm has a benchmark PE of 18.7 and an EPS of $4.18 (annual). Earnings are expected to grow 3.20% annually. What is
A. Currently, a firm has a benchmark PE of 18.7 and an EPS of $4.18 (annual). Earnings are expected to grow 3.20% annually. What is the percent change in the stock price after the first year?
3.67% |
4.23% |
4.08% |
2.89% |
3.20% |
B.A new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15% a year for the next four years and then decreasing the growth rate to 3.50% per year. The company just paid its annual dividend in the amount of $.20 per share. What is the current value of one share of this stock if the required rate of return is 15.50%?
$2.04 |
$1.82 |
$2.71 |
$2.49 |
$3.05 |
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