Question
Saks Fith Av. Inc. paid a $1,23 dividend per share last year and is expected to continue to pay out 80% of its earnings as
Saks Fith Av. Inc. paid a $1,23 dividend per share last year and is expected to continue to pay out 80% of its earnings as dividends. If the Saks expected to generate a 13% return on equity in the future investment opportunities and the shareholders require a 15% return on the stock, what is the value and the PER of the stock?
The values I got is
V0= 10.16
PER= 6.4516
Can you please let me know if I have got the right answers?
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
ISBN: 111910422X, 978-1119104544, 1119104548, 978-1119104223
