Question
Here are data on two stocks, both of which have discount rates of 12%: Stock A Stock B Return on equity 12 % 10 %
Here are data on two stocks, both of which have discount rates of 12%:
| Stock A | Stock B | |||||
| Return on equity | 12 | % | 10 | % | ||
| Earnings per share | $ | 2.60 | $ | 2.10 | ||
| Dividends per share | $ | 1.30 | $ | 1.30 | ||
What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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Quantitative Analysis For Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Hale
14th Edition
0137943601, 9780137943609
