Question
Nvidia Inc. just paid dividends of $1 per share on earnings of $4 per share. The book value of equity per share is $40 and
Nvidia Inc. just paid dividends of $1 per share on earnings of $4 per share. The book value of equity per share is $40 and dividends are expected to grow at 5% a year in the long term. The stock has a beta of 0.75. The treasury bond rate is 6% and the market risk premium is 5.5%. Estimate the price to book value of equity.
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Step: 1
To estimate the pricetobook value of equity PB ratio for Nvidia Inc we can use the Gordon Growth Mod...
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
