Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gergio's Electrical Solutions if the market rate of their stock is 4 . 2 % , while the risk free rate is 2 . 7

Gergio's Electrical Solutions if the market rate of their stock is 4.2%, while the risk free rate is 2.75%. The beta of similar companies is at 4%, and the recent dividend that has been issued is $3.60.
The firm has reported recent earnings of $5,200,000 this year, with 500,000 shares in the market.
The return on equity is at 3%.
What is the value of the stock for Gergio's Electric Solutions?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

11th Edition

1032241829, 978-1032241821

More Books

Students also viewed these Finance questions

Question

Define a social entrepreneur.

Answered: 1 week ago