Question
Given your answers in Questions 1 and 2 are different, what would you actually expect the price of Roller Burger stock to be? Why? posted
Given your answers in Questions 1 and 2 are different, what would you actually expect the price of Roller Burger stock to be? Why? posted first two questions earlier. question 1: Roller Burger Drive-in is expected to pay a $1.20 dividend next year. The dividends are expected to grow at a rate of 5%. If the required return is 8%, what is the price of the stock? question 2: Forget your answer in question one) The PE ratios for the fast food industry are as follows: McDonalds 26.4 Yum 23.88 Jack in the Box 18.41 Dominos Pizza 32.42 If Roller Burger Drive-in has an Earnings per Share of $2. What would be the highest, lowest and average price that you would expect for Roller Burger stock?
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