Question
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recommendation. As a result, you decide
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recommendation. As a result, you decide to take a look for yourself and to place a value on the company's stock.Here's what you find: This year, Oasis paid its stockholders an annual dividend of
$2.662.66 a share, but because of its high rate of growth in earnings, its dividends are expected to grow at the rate of 1414% a year for the next 4 years and then to level out at 12% a year. So far, you've learned that the stock has a beta of 1.731.73, the risk-free rate of return is 66%, and the expected return on the market is 12%
Found that rate of return on the investment is16.38
The value of the company's stock is???????????
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