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Assume the price of one share of the market index is currently $1,756.54. Earnings are currently $82.35. We expect earnings to grow at 5.59%
Assume the price of one share of the market index is currently $1,756.54. Earnings are currently $82.35. We expect earnings to grow at 5.59% for the next five years and at rf = 2.55% forever after that. What is the implied ERP?
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To calculate the implied equity risk premium ERP we can use the following formula ERP Expected Retur...
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
5th edition
1259289907, 978-1259289903
