Question
An analyst feels that Ruth Inc.s earnings and dividends will grow at 16% for three years, after which growth will fall to a constant rate
An analyst feels that Ruth Inc.s earnings and dividends will grow at 16% for three years, after which growth will fall to a constant rate of 7%. If cost of equity is 11%, and Ruths most recently paid dividend was $3.5. What is the value of Ruths stock using the multistage growth model?
| A. | $104 | |
| B. | $95 | |
| C. | $108 | |
| D. | $118 |
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Beginner Day Trader Market Timing Bible
Authors: Joe Valuta
1st Edition
1542456142, 978-1542456142
