Question
A stock just paid an annual dividend of $5.2. The dividend is expected to grow by 4% per year for the next 4 years. In
A stock just paid an annual dividend of $5.2. The dividend is expected to grow by 4% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 12 and the payout ratio to be 60%. The required rate of return is 8%.
What is the intrinsic value of the stock?
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Securitisation Derivatives A Practioner's Handbook
Authors: Mark Aarons, Vlad Ender, Andrew Wilkinson
1st Edition
1119532272, 978-1119532279
