Question
Applied Materials Inc. (Symbol: AMAT) has the following financial statistics: stock price = $19.08, market cap = $25.83 billion, beta = 0.3, dividend payout ratio
Applied Materials Inc. (Symbol: AMAT) has the following financial statistics: stock price = $19.08, market cap = $25.83 billion, beta = 0.3, dividend payout ratio = 23%, EPS = $1.10, Expected DPS = $0.24, analyst forecast of earnings growth rate = 12%. Suppose r = 16%. Based on the constant growth valuation model and using the data provided, calculate the stock price.
| A. | $19 | |
| B. | $24 | |
| C. | $6 | |
| D. | None of the above |
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
