Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

now plz Anwer You are a financial analyst at Bank of America and you have collected following information for Lotus Tech Company. The company has

now plz image text in transcribed
Anwer You are a financial analyst at Bank of America and you have collected following information for Lotus Tech Company. The company has beta of 1.5 and a ROE of 20%. The dividend payout ratio is 50%. Last twelve month earnings were 54 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 13%, and T-bills currently offer a 5% return 1a. What is the intrinsic value of the stock? (input format: $15.32) I 1b. What is PVGO? (input format: $15.32) 10. Suppose your research convinces you that company will announce momentarily that it will immediately change its dividend payout ratio to 40%. Find the intrinsic value of the stock. (input format: $15.32) For Blank 2

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

Step: 3

blur-text-image

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 Applications And Theory

Authors: Marcia Cornett, Troy Adair, John Nofsinger

1st Edition

0073382256, 9780073382258

More Books

Students also viewed these Finance questions