Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jenny considers investing in a stock. It just paid investors $4 per share dividend. The beta of this stock is 1.2. The market return is

image text in transcribed
Jenny considers investing in a stock. It just paid investors $4 per share dividend. The beta of this stock is 1.2. The market return is 10%, and the risk-free rate is 4%. The ROE of this stock is 20%, and payout. ratio is 60%. Please find the intrinsic value of this stock. $130 135 $140 $145

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Development

Authors: Barbara Stallings

1st Edition

0815780850, 978-0815780854

More Books

Students also viewed these Finance questions