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How do you find the current price and expected price of the stock for question 28? D39 xfcC39 (1+031) 26 This data for 11/15/2018 27
How do you find the current price and expected price of the stock for question 28?
D39 xfcC39 (1+031) 26 This data for 11/15/2018 27 28 29 beta 2.7 0.02 0.075 Risk free Rate expected mkt return expected EPS growth in the next5 years Current EPS 30 31 32 0.395 7.3 34 35 26 The expected return on NVDA stock is 16.85% rfr +b*return of market -rf Assume that the growth rate in the above table,in cell C31, is sustained for the next 5 years, after wich the growth will drop to the rate in cell 136. Please provide the expected dividentd for the following years, where 36 37 38 39 40 41 42 43 27 t 0 is current year. 0.05 Dt 7.3 10.18 14.21 19.82 27.65 38.57 40.49 28 Provide the current price, PO, and the expected prices at the end of year t, Pt, P3 PO -44.96 P1 .72 -87.49 122.05 P4 170.27 P5 -237.52 P2 Pt -62.7287.4 On November 15, 2018 after close NVDA missed its quarterly earnings target by 5%. As a result the stock price droped by 29 23%. what istheexpected EPS growth in the next 5 years that justifies this price 45 46 47 48 49 30 Explain why such modest earning missing-out may have such a drastic impact on the priceStep by Step Solution
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