Question
Q1. Tapley Products is a privately held firm whose forecasted earnings per share (EPS) are $14.25, and suppose the average price/earnings (P/E) ratio for a
Q1. Tapley Products is a privately held firm whose forecasted earnings per share (EPS) are $14.25, and suppose the average price/earnings (P/E) ratio for a set of similar publicly traded companies is 12.6. Estimate the intrinsic value of Tapley's stock.
Q2.A stock just paid a dividend of D0= $2.33.Dividend is expected to grow at a constant rate of 4.7%.The required rate of return is 12.1%. What is the current stock price?
Q3.A stock isexpectedto pay a dividend of $2.33 at the end of the year.The dividend is expected to grow at a constant rate of 6.8%. The required rate of return is 19.3%. What is the stock's current price?
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
