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Please show with work and with calculator work if possible :) Thanks 29. An analyst estimates the EPS of Jim Inc. in the next six
Please show with work and with calculator work if possible :) Thanks
29. An analyst estimates the EPS of Jim Inc. in the next six years to be $0, 90, $4.2, $4.6. $5.2, and $6.0. The company has a policy of paying out 60% of its earnings each year in dividends. The average leading industry P/E in year 5 is expected to be 20. The cost of equity is 15%. What is the terminal value at the end of year 5? A. $112 B. $92 $120 D. $104, 20 x 30. An analyst estimates the EPS of Jim Inc. in the next six years to be $0, SO, $4.6, $5.2, and $6.0. The company has a policy of paying out 60% of its earnings each year in dividends. The average leading industry P/E in year 5 is expected to be 20. The cost of equity is 15%. What is the current value of Jim's stock? Do not round intermediate calculations. A. $60 B. $56 $64 D. $66Step by Step Solution
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