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Melated to Checkpoint 10.2) Relative valuation of common stock wing the Perito approach to valuation, calculate the value of a share of PIE an of

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Melated to Checkpoint 10.2) Relative valuation of common stock wing the Perito approach to valuation, calculate the value of a share of PIE an of stock under the following conditions the investora rired rate of retumis 15 percent . the expected level of earnings at the end of is yes is 57 the fm follows a policy of retaining 50 percent of its camingo. the return on equity (ROE14 percent, and similar shares of stock slot muliples of 6.250 times camins per share Now show that you get the same awer using the discounted dividend model The stock price using the Pre nato valuation method is 4378" (Round to the nearest cent) 6. The stock price using the dividend discount model is $ (Pound to the nearest cent)

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