Question
PLEASE HELP ME OUT WITH THIS! The current share price is: 8.73 The firm's dividends per share over the last year was: 0.33 The firm's
PLEASE HELP ME OUT WITH THIS! The current share price is: 8.73 The firm's dividends per share over the last year was: 0.33 The firm's earnings per share (EPS) over the last year was: 0.61 Calculate its dividend payout ratio over the last year: 0.540983607 Lookup the stock's CAPM beta using Reuters, Yahoo finance or other source: 1.4 Calculate the stock's total required return based on the above data: 0.132 Estimate the stock's dividends per share over the next year: 0.3498 Estimate the stock's earnings per share over the next year: 0.6466 Calculate the implied perpetual growth rate of dividends per annum (g), assuming that the stock is fairly priced and suits being valued as a perpetuity: 0.094199313 Calculate the mid-point of the RBA's inflation target band: 0.025 Calculate an estimate of the stock price as a perpetuity assuming that its earnings are all paid as dividends (100% dividend payout ratio) and that the growth rate of earnings (and dividends) is equal to the mid-point of the RBA's inflation target band. 3.08411215
Assuming that your stock valuation in the previous question is correct while the current market price is wrong, calculate the: |
1. NPV of buying one stock at the current market price:___$/share
2. IRR of buying one stock at the current market price: ___pa
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