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An analyst develops the following information to value a common stock. Last year's earnings per share = $4.00 Risk-free rate = 9% Return on equity
An analyst develops the following information to value a common stock.
- Last year's earnings per share = $4.00
- Risk-free rate = 9%
- Return on equity (ROE), expected to remain constant in the future= 10%
- Dividend payout, expected to remain stable in the future = 30%
- Stock's beta = 1.4
- Expected market return = 14%
What should the stock price be today?
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
