Question
Bob's Construction Co has a constant growth in earnings per share with the following earnings: 2009: $3.00, and 2014: $4.50. Dividends represent 40% of earnings.
Bob's Construction Co has a constant growth in earnings per share with the following earnings: 2009: $3.00, and 2014: $4.50. Dividends represent 40% of earnings. If the required rate of return is 14% what is the estimated value of the stock in 2014?
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
