Question
Consider a firm that has EPS of $5 at the end of the first year, a dividend-payout ratio of 30-percent, a discount rate of 16-percent,
Consider a firm that has EPS of $5 at the end of the first year, a dividend-payout ratio of 30-percent, a discount rate of 16-percent, and a return on retained earnings of 20-percent. The firm retains some of its earnings each year and it is selecting growth opportunities each year.
Calculate the price of stock by using NPVGO model
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
