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If a stock is currently priced at $50 per share and the firms current earnings per share is $8, what price would you pay if
If a stock is currently priced at $50 per share and the firms current earnings per share is $8, what price would you pay if you forecast new earnings per share to be $6.00?
If you believe that due to new product development, a stocks dividends will grow at a rate of 30% for three years, and then settle at a normal 8% thereafter, how much do would you be willing to pay for the stock today if you require a 13.4% return, and the last paid dividend was $1.15?
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