Answered step by step
Verified Expert Solution
Question
1 Approved Answer
INV Design Ltd just paid a dividend of $4, and its earnings per share was $6. The current risk free rate is 3.5%, and the
INV Design Ltd just paid a dividend of $4, and its earnings per share was $6. The current risk free rate is 3.5%, and the market has an expected return of 11.5%. INV has a beta of 1.25. The Net Income margin is 15%, Asset Turnover is 1.25 and Debt-to-Equity is 0.6.
Calculate the current share price using the Dividend Discount Model
Calculate the PE ratio of INV using historic trailing 12 months earnings.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started