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stock valuation is the P/E ratio. Risk-free rate(2018) 2.83% Beta 0.75 Market risk premium 4.13% Return on stock 5.93% EPS(2018) 5.61 Retention ratio 37% ROE(2018)

stock valuation is the P/E ratio.

Risk-free rate(2018)

2.83%

Beta

0.75

Market risk premium

4.13%

Return on stock

5.93%

EPS(2018)

5.61

Retention ratio

37%

ROE(2018)

24%

D1 (2016)

3.15

D2 (2017)

3.32

D3 (2018)

3.54

Growth rate (2018)

9.0%

FORMULAS USED:

P₁ = D₃/ (k - g)

P₀ = D1/1.05 + D2/1.05² + P1/1.05³

g = ROE x retention ratio

Please help with calculation

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