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If b=0.4,What is the expected dividend per share,G,Price,P/E,and PEG ratio? Answer and explain - EXAMPLE ABC STOCK HAS AN EXPECTED ROE =12% PER YEAR, EXPECTED
If b=0.4,What is the expected dividend per share,G,Price,P/E,and PEG ratio?
- EXAMPLE ABC STOCK HAS AN EXPECTED ROE =12% PER YEAR, EXPECTED EPS OF \$2, EXPECTED DIVIDENDS OF \$1.5 PER SHARE. ITS MARKET CAP RATE IS 10% PER YEAR. - WHAT IS G? g=ROEb=0.1220.5=0.03=3% - WHAT IS ITS INTRINSIC PRICE, USING THE CONSTANT GROWTH MODEL? P0=0.10.031.5=21.43 - JUSTIFED P/E RATIOZ 221.43=10.715 - PEG RATIOR 310.715=3.57 - ASSIGNMENTI IF b=0.4, WHAT IS THE EXPECTED DIVIDEND PER SHARE, G, PRICE, P/E, AND PEG RATIOT Answer and explain
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