Question
Go to any Finance website, and get the quote information of a stock you chose: Explain all information on the stock quote web page Use
Go to any Finance website, and get the quote information of a stock you chose:
Explain all information on the stock quote web page
Use the following three methods to determine if you will purchase this stock at current market price. Assume market interest rate ( r) as 12%, constant dividend growth rate (g) as 10%, EPS will increase 10% next year, and industry average P/E ratio as 20 times
True value method (Gordon dividend valuation model )
Annual rate of return method (Gordon dividend valuation model)
P/E multiples approach
If you purchased this stock at 52 week range low, sold it at current market price, and you also received dividend during this holding period; calculate holding period rate of return.
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