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Say you are trying to value QAN shares as of 30 December 2022. The closing QAN price for this day was $6.01. Assume a dividend
- Say you are trying to value QAN shares as of 30 December 2022. The closing QAN price for this day was $6.01. Assume a dividend of $0.27 in 2023. You also estimate that for the next two years (2024 and 2025) dividends will grow at 15% per year. After this (starting in 2026) you estimate dividends will grow at a constant rate of 3% forever. Assume the Australian 10-year government bond has a yield of 3.6%, the market risk premium is 6.5% and the beta of QAN is 1.05. Based on your valuation, should you buy QAN shares? Explain your answer
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Introduction To Personal Finance Beginning Your Financial Journey
Authors: Lance Palmer, John E. Grable
2nd Edition
1119797063, 978-1119797067
