Question
The company Phoenix is a US company and has announced a dividend of $10, and will pursue a dividend growth policy of 3% per year.
The company Phoenix is a US company and has announced a dividend of $10, and will pursue a dividend growth policy of 3% per year.
The current YTM of the 10 year T-Bond government bond is equal to 2%
The beta of the stock is equal to 1.2
The market premium is equal to 5%
- Evaluate the price per share using the Dividend Discount Model (Gordon)
- The current market price for the stock is 206$ per share. Is the stock fairly valued?
- This morning OCSE modified the expected growth rate of the US economy which is now 2,5%. Everything else being equal do you expect a change of the price of the share? What is the price you would expect?
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Essentials Of Health Care Finance
Authors: William O. Cleverley
3rd Edition
0834203413, 978-0834203419
