Question
aco wants to run a hedge fund one day. Early in 2015, Paco is analyzing shares of the XYZ Corp. He expects the following dividends
aco wants to run a hedge fund one day. Early in 2015, Paco is analyzing shares of the XYZ Corp. He expects the following dividends per share (end of year). 2015 - $1
2016 - $1.25
2017 - $1.50 He expects 2017 earnings per share to be $3.50 and XYZ's P/E ratio to be 10. His required rate of return for this stock is 13%. He should pay no more than
| $27.16 per share. | ||
| $30.71 per share. | ||
| $28.75 per share. | ||
| $23.52 per share. |
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
13th edition
978-1259444951
