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Alphabet Corporation (NASDAQ: GOOG) has an EPS of $4.96. Calculate the value of the stocks using the Benjamin Graham formula, according to the assumptions
Alphabet Corporation (NASDAQ: GOOG) has an EPS of $4.96. Calculate the value of the stocks using the Benjamin Graham formula, according to the assumptions in the questions below and then compare your results withe current price of the stock (Visit finance.yahoo.com and look for Goog's stock price) and say if you should invest in the stock or not: a) b) Discount Rate: 4%, Growth rate: 3%., Should you invest? Why? Discount Rate: 4%, Growth Rate: 6%, Should you invest? Why? First Republic Bank (NYSE: FRC) has an EPS of $6.10 and a dividend of $1.08. Calculate the value of the stocks using the Benjamin Graham formula and the constant growth model formula, according to a Discount Rate: 8% and estimated Growth Rate: 2%. Compare the results obtained using the two formulas and also compare them with the current price of the stock (Visit finance.yahoo.com and look for FRC's stock price) and say if you should invest in the stock or not based in the result of each of your calculations (with the BG's formula and CGM's formula).
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