Question
The Company AV just announced that its earnings was $600 million this year. Analysts expect AV earnings to grow at a rate of 4% per
The Company AV just announced that its earnings was $600 million this year. Analysts expect AV earnings to grow at a rate of 4% per year forever. AV plans to pay out 20% of its earnings in dividends and they expect to use another 40% of their earnings to repurchase shares. AV WACC is 13% and it has no debt. It has 116 million shares outstanding Find the value of a share of AV stock.
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
