Question
No Nonsense Peanut Butter maintains a payout ratio of 60%. Its upcoming eps is expected to equal 4. Investors expect 7.5% eps growth into the
No Nonsense Peanut Butter maintains a payout ratio of 60%. Its upcoming eps is expected to equal 4. Investors expect 7.5% eps growth into the future. The interest rate component of the discount rate is the same as Fabians but investors add another 2% to the risk premium. Using the Gordon Growth Model, what is No-Nonsenses price- per-share?
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
